Which of the following statements is correct? When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished. When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished. When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized. When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction. All of the above are correct.
Which of the following statements is correct? When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished. When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished. When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized. When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction. All of the above are correct.
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 4DQ
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Which of the following statements is correct?
- When
depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished. - When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished.
- When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized.
- When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction.
- All of the above are correct.
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