What is the maximum unrecaptured § 1250 gain from the sale of a building that was sold for $342,000 with $104,000 depreciation?

To determine the maximum unrecaptured § 1250 gain from the sale of a building that has been depreciated, we need to understand the implications of depreciation on the property's sale price. In this scenario, the building sold for $342,000 and had accumulated depreciation of $104,000.

Unrecaptured § 1250 gain generally refers to the portion of gain that is attributable to depreciation taken on a property that is sold. In this case, since the depreciation is $104,000, this amount represents the maximum potential unrecaptured gain since it reflects the depreciation that was allowed or allowable during the time the property was held.

When a property is sold, the amount of unrecaptured § 1250 gain is limited to the total depreciation taken on that property. Therefore, in this situation, the maximum unrecaptured § 1250 gain will equal the depreciation amount of $104,000, as this is the extent to which the gain can be categorized under this provision.

The sale price of $342,000 does not influence the classification of the unrecaptured gain but could influence the overall gain recognized on the sale when considering the basis and other factors. However, for the purpose of identifying unrecaptured § 125