Joined: 05 Oct 2010 Location: United States
Online Status: Offline Posts: 21
Posted: 30 Aug 2011 at 18:46 | IP Logged
Ok personal holding companies income comes from passive income, does this include section 1245 & 1250 recapture (of depreciation, treated as ordinary income)? I am guessing that it is since it income related to property is considered passive income? What do you guys think?
__________________ The harder you work the harder it is to surrender V. Lombardi
Joined: 16 Jun 2010
Online Status: Offline Posts: 114
Posted: 01 Sep 2011 at 16:10 | IP Logged
Section 1245 and 1250 assets relate to any assets subject to depreciation that is held for more than 1 year. Section 1245 related to personal property and 1250 relate to real property. So, depending on what the asset is used for (i.e. business or passive activity rental) the ordinary gains or losses would be treated as such.
I could be wrong, someone please confirm.
I would do a google search to get a better understanding of section 1245 & 1250.
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Topic: Section 1245 & 1250 recapture & phc’s
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