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During his working years, Alfred ran a construction business that was very successful in the local community. When he retired, he kept one of the
During his working years, Alfred ran a construction business that was very successful in the local community. When he retired, he kept one of the front-end loaders in order to use it on his large estate. The front-end loader was originally purchased for the business at a cost of $145,000 and Alfred had taken $100,000 of depreciation by the time he retired. Alfred died last month, and the front-end loader was valued in his estate at $58,000. If Alfred's daughter, Linda, inherits the front-end loader, and sells it for $59,000 two months after Alfred's death, what is the income tax treatment on the sale? $1,000 ordinary income. $1,000 long-term capital gain. $1,000 short-term capital gain. $14,000 ordinary income
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