29. Javier is the sole proprietor of a trampoline shop. During 2021, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss?

If an amount is zero, enter "0".

Question Content Area

a. Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1988, had an allocable basis of $40,000. Javier has additional parking across the street and plans to use the condemnation proceeds to build his inventory.

There is a loss of $25,000 that is treated as 1231 loss.

b. A truck used to deliver trampolines was sold on January 2, 2021 for $3,500. The truck was purchased on January 2, 2017, for $6,000. On the date of sale, the adjusted basis was zero.

There is a gain of $3,500 that is treated as 1231 gain.

c. Javier sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated.

There is a gain of $4,900 that is treated as ordinary loss.

d. Javier sold an apartment building for $300,000 on September 1. The rental property was purchased on September 1, 2018, for $150,000 and was being depreciated over a 27.5-year MACRS life using the straight-line method. At the date of sale, the adjusted basis was $124,783.

There is an overall 1231 gain / 1231 loss / ordinary gain / ordinary loss of $______.

How much 1250 recapture is recognized? $________.

What is the amount of unrecaptured 1250? $_____

e. Javier's personal yacht was stolen on September 5. The yacht had been purchased in August at a cost of $25,000. The fair market value immediately preceding the theft was $19,600. Javier was insured for 50% of the original cost, and he received $12,500 on December 1

There is a tax gain / loss (before any AGI limitations) of $_____ that is treated as 1231 loss / business casualty loss nondeductible personal casualty loss / partially deductible personal casualty loss.

f. Javier sold a Buick on May 1 for $9,600. The vehicle had been used exclusively for personal purposes. It was purchased on September 1, 2017, for $20,800.

There is a gain / loss of $____ that is treated as 1231 loss / business loss / casualty loss / nondeductible personal loss.

g. Javier's trampoline stretching machine (owned two years) was stolen on May 5, but the business's insurance company will not pay any of the machine's value because Javier failed to pay the insurance premium. The machine had a fair market value of $8,000 and an adjusted basis of $6,000 at the time of theft.

There is a tax gain / loss of $____ that is treated as business casualty loss / personal casualty loss / nondeductible personal loss.

h. Assume Javier had AGI of $102,000 from sources other than those described above. He also has no nonrecaptured 1231 look back losses.

What is Javier's 2021 AGI?

Javier's 2021 AGI is $____.