Question
Bryan carried out the following transactions during 2020: He sold a building for $ 200,000, which he had purchased for $ 75,000 in 2016. A
Bryan carried out the following transactions during 2020:
He sold a building for $ 200,000, which he had purchased for $ 75,000 in 2016. A terrace was constructed for that building for $ 25,000. Because the building has been leased for three (3) years, Bryan has claimed a depreciation expense of 10,000. Bryan paid $ 5,000 in selling expenses. He sold his personal car for $ 5,000, which he had bought in 2010 for $ 20,000. He sold a stock for $ 50,000 that he had acquired in 2015 for the amount of $ 65,000. He sold Puerto Rico Government bonds for $ 5,000 on October 15, 2020 that he purchased on February 1, 2020 for the amount of $ 8,000.
Determine what is the tax treatment of the transactions previously presented on Bryan's individual income tax return for 2020. Submit your computations.
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