Which statement is true regarding recapture of listed property under §280F? The

Question

Which statement is true regarding recapture of listed property under §280F?

The year following the year of recapture, use the straight-line (SL) method in the general depreciation system (GDS), as long as the business use of the item is 50% or less.

No depreciation is claimed for the item for the year in which recapture is made.

The year of the recapture and in all subsequent years of depreciation, use the straight-line (SL) method over the alternative depreciation system (ADS) recovery period.

The year following the year of recapture, use the general depreciation system (GDS), unless business use of the item drops to 50% or less.

Which statement is true regarding recapture of listed property under §280F?

Explanation / Answer

Solution: The year following the year of recapture, use the general depreciation system (GDS), unless business use of the item drops to 50% or less.

Explanation: In the current scenario prior-year asset's business use percentage, and it has dropped below 50 percent in the current year, and also the asset's current and prior depreciation have been computed thus qualifies for listed property under §280F

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.