Where Form 4797 Recapture 2023-2024

Hello in this video we'll discuss section 1245 depreciation and amortization recapture now before we go into the specifics and the rules that apply let's talk about the problem in the solution of why we would have section 1245 recapture now recapture just means recharacterization we've been talking a lot about recharacterization rules when it comes to tax characterizations all about the character of the gain or loss so if you recall from the general concepts video of characterization there's really ultimately two different characters of gains or losses there's ordinary and there's capital now within capital we can have long term and short term but ordinary has just treated as ordinary we don't have a distinction between long term and short term if you also remember that there's a preference if a tax payer generally has in general a tax payer if they have a game they want long term capital gain but if they have a loss they want ordinary loss and the reason for the for the capital gain is because long term capital gain usually will result in preferential rates ordinary losses have last limits than capital losses and also being able to offset an ordinary ordinary income with ordinary loss gives a better greater tax benefit so we want to get long term capital gain if we have gate so keep that in mind for this video we want long term capital gain if we can get it okay and that's a lot of what you're gonna see a specific the problem the solution would apply with section 1245 so keep that in mind we want to get long term capital gain if we have gate so here's the problem in the other characterization videos we talked about sale or exchange so generally get capital...