Exchange for Non-Depreciable Property
What a lot of investors don't know. When depreciable section 1250 property is exchanged for non-depreciable real property, such as raw land, then excess depreciation and 1250 unrecaptured gain is recaptured and is taxable at the time of the exchange, even though no taxable boot is received in the exchange. This is a tax trap that few taxpayers are aware of.
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