dfa
Level 3
05-31-2020
01:27 PM
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I figured this one out. I needed to check the box that it's 1250 property since it's pre-1987 property and research whether there's any 1250 recapture subject to ordinary income. So I think it's very important to not ignore this diagnostic. If this diagnostic appears, you may be tagging your client with ordinary income rather than capital gain.