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Is the recapture of depreciation under IRC Sections 1245, 1250 and 1254 considered passive income?

April 26, 2017depreciation income IRC passive recapture

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Is the recapture of depreciation under IRC Sections 1245, 1250 and 1254 considered passive income?

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IRC requires that the recapture of depreciation or expensed amounts under these sections be treated as ordinary income. As a result, the recapture is not considered passive income when computing the 90% test under TTC 171.0003(a)(2).