Depreciable Capital Property Flashcards
1
Q
UCC is negative
A
if UCC before disposition - the lesser of capital cost and FMV is negative - there is recapture
2
Q
UCC is positive
A
If UCC before disposition minus the lesser of capital cost and FMV is position - there is terminal loss
3
Q
Recapture of UCC
A
is fully included in taxable income for the year
4
Q
Terminal loss
A
Fully reduces taxable income for the year
