Mr. A owned a non-residential building, purchased in 2019, the original cost of which was $500,000, plus $150,000 for the cost of land. The UCC value of the building was $400,000, and the land and building were sold for $750,000 in 2021. The split the taxpayer used between land and building was $300,000 for building and $450,000 for land.

Required: Assuming that Mr. A wishes to minimize his taxes, what are the tax implications regarding the sale?

one of the advanced provisions that would apply to Mr. A would require Blank 1 in this scenario.

The gain/loss of the Land will be adjusted to $Blank 2 capital gain.

The gain/loss of the building will be adjusted to $Blank 3.