Betty inherited a building from her great aunt who depreciated the building using straight line depreciation. The FMV on the date of Betty$$s aunt$$s death was $$125,000.$ Betty never used the building for personal purposes. After Betty inherited the building, she noticed a window was broken. She had the whole window replaced, which cost $$1,300.$ Betty recently sold the building for $$113,500.$

What is the amount of the gain$/$loss and how should Betty report the gain from the sale?

$*$

Betty is not required to report the gain from the sale of a personal asset

Betty should report $$125,000$ on Form $1040,$ line $8.$

Betty should report $$113,500$ as a gain on Form $8949$ and on Schedule D

Betty should report the $$12,800$ loss on Form $4797.$