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Makayla owns a downtown office building. She originally purchased the building for $2,000,000 and took straight-line depreciation deductions of $1,200,000. Makayla is in the 37%
Makayla owns a downtown office building. She originally purchased the building for $2,000,000 and took straight-line depreciation deductions of $1,200,000. Makayla is in the 37% tax bracket. What are the tax consequences if she sells the building for $2,100,000 (ignore the 3.8% net investment income tax)? Group of answer choices Makayla will have ordinary income of $0. Makayla will have 1231 gains of $100,000 taxed at 20%. Makayla will have $1,200,000 of gain taxed at 25%. All of the above
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