Depreciation Recapture as Ordinary Income - Sale of Personal Property
Answer:
Report gain or loss on the sale of depreciable property on Form 4797.
The gain realized on the sale of depreciable personal property (Section 1245 property) is treated as Ordinary income to the extent the gain is atrributed to depreciation that reduced basis.
The gain realized on the sale of depreciable personal property (Section 1245 property) is treated as Ordinary income to the extent the gain is atrributed to depreciation that reduced basis.
