Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss?

If an amount is zero, enter "0".

a. Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of $40,000. Larry has additional parking across the street and plans to use the condemnation proceeds to build his inventory.

There is a(gain or loss?) of $____that is treated as ( 1231 gain, 1231 loss, ordinary income or ordinary loss?)

b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was zero.

There is a (gain or loss?) of $________ that is treated as(ordinary loss, 1231 loss, 1231 gain, ordinary income under 1245 or ordinary income under 1250?)

c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated.

There is a (gain or loss?) of $_______ that is treated as (ordinary loss, 1231 loss, 1231 gain, ordinary income under 1245 or ordinary income under 1250?)

d. Larry sold an apartment building for $300,000 on September 1. The rental property was purchased on September 1, 2017, for $150,000 and was being depreciated over a 27.5-year life using the straight-line method. At the date of sale, the adjusted basis was $124,783.

There is an overall ( 1231 gain, 1231 loss,ordinary gain,or ordinary loss) of $_______?

How much 1250 recapture is recognized? $_______?

What is the amount of unrecaptured 1250? $_______?

e. Larry's personal yacht was stolen on September 5. The yacht had been purchased in August at a cost of $25,000. The fair market value immediately preceding the theft was $19,600. Larry was insured for 50% of the original cost, and he received $12,500 on December 1.

There is a tax (gain or loss?)(before any AGI limitations) of $_______ that is treated as ( 1231 loss, business loss, casualty loss, or nondeductible personal loss?)

.

f. Larry sold a Buick on May 1 for $9,600. The vehicle had been used exclusively for personal purposes. It was purchased on September 1, 2016, for $20,800.

There is a (gain or loss?)of $_________ that is treated as ( 1231 loss, business loss, casualty loss, or nondeductible personal loss?)

g. Larry's trampoline stretching machine (owned two years) was stolen on May 5, but the business's insurance company will not pay any of the machine's value because Larry failed to pay the insurance premium. The machine had a fair market value of $8,000 and an adjusted basis of $6,000 at the time of theft.

There is a tax (gain or loss?) of $________ that is treated as (business casualty loss, personal casualty loss or nondeductible personal loss?)

.

h. Assume Larry had AGI of $102,000 from sources other than those described above. He also has no nonrecaptured 1231 lookback losses.

What is Larry's 2019 AGI? Larry's 2020 AGI is $______.