Qualified Capital Gain

Qualified capital gain is any gain recognized on the sale or exchange of a DC Zone asset that is a capital asset or property used in a trade or business. It doesn’t include any of the following gains.

Gain attributable to periods after December 31, 2016.

Gain treated as ordinary income under section 1245.

Section 1250 gain figured as if section 1250 applied to all depreciation rather than the additional depreciation.

Gain attributable to real property, or an intangible asset, that isn’t an integral part of a DC Zone business.

Gain from a related-party transaction. See Sales and Exchanges Between Related Persons in chapter 2 of Pub. 544.