https://www.wipfli.com/insights/articles/110727-tax-consequences https://www.wipfli.com/insights/articles/110727-tax-conseque... "In addition, a special puniti

https://www.wipfli.com/insights/articles/110727-tax-consequences https://www.wipfli.com/insights/articles/110727-tax-conseque... "In addition, a special punitive rule applies to convert gain otherwise taxable as capital gain to ordinary income. If the property sold or exchanged (a liquidation is treated as a sale) between related parties is depreciable by the buyer (regardless of whether the property was depreciable by the seller), § 1239 requires any gain recognized on the sale or exchange to be treated as ordinary income."