LO.2 Bob owns a farming sole proprietorship. During the year, Bob sold a milk cow that he
Question:
LO.2 Bob owns a farming sole proprietorship. During the year, Bob sold a milk cow that he had owned for 15 months and a workhorse that he had owned for 66 months.
The cow had an adjusted basis of $38,000 and was sold for $25,000. The horse had an adjusted basis of $750 and was sold for $4,000. Bob also has a $200 long-term capital loss from the sale of corporate stock. He has $55,000 of other AGI (not associated with the items above) for the year. He has $4,000 nonrecaptured § 1231 losses from the previous five years. What is the nature of the gains or losses from the disposition of the farm animals?
What is Bob’s AGI for the year?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
South Western Federal Taxation 2013 Individual Income Taxes
ISBN: 9781133189558
36th Edition
Authors: William Hoffman, James E. Smith
Question Posted: