Brad sold a rental house that he owned for $250,000. Brad bought the rental house five years ago for $225,000 and has claimed $50,000 of depreciation expense. What is the amount and character of Brad's gain or loss?
A. $25,000 ordinary and $50,000 unrecaptured §1250 gain.
B. $25,000 §1231 gain and $50,000 unrecaptured §1250 gain.
C. $75,000 ordinary gain.
D. $75,000 capital gain.
E. None of these.
Answer: B. $25,000 §1231 gain and $50,000 unrecaptured §1250 gain.