Christmas+Tree+Diagram

Determining Capital Gains and Losses:


[1h speaks about unrecaptured basis; if you have depreciated the property, and you have gain, that gain is going to be taxed at 25%]
 * §1250** - Prior to 1986 Property Depreciation

{Certain depreciable property Sec 167 Depreciation} (a)(3)(B)
 * §1245 - [GAIN]** Recapture tangible personal property; recomputed.


 * §1239** - Sale and exchange [**GAIN**] between Related Parties


 * §1231** - Depreciable property held in Trade or Business for more than 1 year; Real Property held in trade or business for more than 1 year.


 * §1221** - Lots of stuff

If it does not fit on the tree, then it is Ordinary income. Example: Property held in trade or business for less than one year.
 * Ordinary Income:**