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Maria was the sole proprietor of an unincorporated business for many years. In September of 2023, she decided to dissolve her business and retire. She
Maria was the sole proprietor of an unincorporated business for many years. In September of 2023, she decided to dissolve her business and retire. She sold a small office building she had used exclusively for business purposes over the years. She realized a gain of $80,000 from the sale of this property. Over the period Maria owned and operated her business, she claimed $50,000 of depreciation on the building. Maria, who will use the single filing status, has 2023 taxable income of $186,100. What is the maximum amount of tax she will have to pay on the $50,000 of unrecaptured Section 1250 gain from the sale of the building? $1,900 $10,000 $12,500 $16,000
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