Question
George Buckner sells an apartment on October 10th of the current year for $1.75 million. The building was purchased on January 1, 1995 for $2
George Buckner sells an apartment on October 10th of the current year for $1.75 million. The building was purchased on January 1, 1995 for $2 million. Depreciation of $420,000 has been taken. The figures given above do not include the purchase price or the selling price of the land. Mr. Buckner's adjusted basis for the land is$200,000, and the sales price is $350,000. Mr. Buckner, who owns and operates a taxi business, sells one of the automobiles for $1,800 on November 14th. The automobile's adjusted basis is zero, and the original cost is $15,000. The automobile was purchased on April 25, 2006. Mr. buckner has no ohter gains and losses during the year, and nonrecaptured net Sec.1231 losses amount to $32,000. Prepare Form 4797 for the current year.
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