19 April 2000 - more section 1250

Those of you who are not Americans, as well as those of you who are, probably don’t know what I’m talking about when I mention obscure U.S. income tax notions like unrecaptured section 1250 gain. It’s quite simple if you’re willing to devote a few months to study. Roughly speaking, the escaped year 1250 gain is the excess, if any, of what the long-term capital gain (like taking Paris) from selling thirteenth-century property would be if the rules were different, over the medieval depreciation recapture (like losing Paris back), which we’ve already recognized as an ordinary outcome. Got that?