### Question
How does the law define unrecaptured section 1250 gain?


### Answer
Under *26 U.S.C. § 1*, **unrecaptured section 1250 gain** is defined as:

> the excess (if any) of—


(i) the amount of long-term capital gain (not otherwise treated as ordinary income) which would be treated as ordinary income if section 1250(b)(1) included all depreciation and the applicable percentage under section 1250(a) were 100 percent, over


(ii) the excess (if any) of—


(I) the amount described in paragraph (5)(B)

#### Citation:
  - *26 U.S.C. § 1*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART I-TAX ON INDIVIDUALS**

