Qualified Capital Gain

Qualified capital gain is any gain recognized on the sale or exchange of a qualified community asset but doesn’t include any of the following.

Gain attributable to periods after December 31, 2014.

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 renewal community business.

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