26 U.S.C. § 1017 — Discharge of indebtedness
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“(d) Recapture of reductions (1) In general For purposes of sections 1245 and 1250— (A) any property the basis of which is reduced under this section and which is neither section 1245 property nor section 1250 property shall be treated as section 1245 property, and (B) any reduction under this section shall be treated as a deduction allowed for depreciation.”
For purposes of this title, a reduction in basis under this section shall not be treated as a disposition.
(d) Recapture of reductions
(1) In general
For purposes of sections 1245 and 1250— (A) any property the basis of which is reduced under this section and which is neither section 1245 property nor section 1250 property shall be treated as section 1245 property, and (B) any reduction under this section shall be treated as a deduction allowed for depreciation.
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