Question
During 2013, Jons business had the following transactions: (a) He sold a computer system for $15,000 with an adjusted basis $12,000 and accumulated depreciation of
During 2013, Jons business had the following transactions:
(a) He sold a computer system for $15,000 with an adjusted basis $12,000 and accumulated depreciation of $8,000.
(b) He sold a building for $250,000 with an adjusted basis of $230,000 and accumulated depreciation of $17,000.
(c) He sold a truck for $10,000 with an adjusted basis of $15,000.
Two years prior, Jon sold a machine used in his business for $11,000 that had an adjusted basis of $20,000 and accumulated depreciation of $4,000. Jon held all property in this question for more than one year before he sold it. Identify how much of Jons current year income is 1245 recapture ordinary income, 1250 unrecaptured gain, 1231 gain or loss and any 1231 recapture.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started