Need assistance with parts 2-5

Dean and Ellen Price are married and have a manufacturing business.

They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019

They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019.

On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is $20,000.

His 2019 Business income and expenditures (Schedule -C):

Sales $ 657,500

Cost of goods sold $ 315,000

Other business expenses (incl. deprecation taken on the storage building) $ 140,000

In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below.

	Placed in Service / Purchased on	Sold on	Initial Cost	2019 Depr. Amount	Accumulated Depreciation. (Depr. Allowed)	Tax Basis= Initial Cost Depr. Allowed
Office tables	4/4/2018	10/16/2019 For $2,900	$3,000	$375	$825
Office chairs	3/1/2015	11/8/2019 For $4,000	$8,000	$1,000	$2,200
Marketable securities	2/1/2019	12/1/2019 For $20,000	$12,000	$0	$0
Land held for investment	7/1/2018	11/29/2019 For $48,000	$45,000	$0	$0

In 2019 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000.

• They also has a short-term capital loss carryover of $10,000 from 2009.

Part II. Summary Sheet for the Sales of Business Property (Form 4797)

Step 1) Sales or Exchanges of Property Used in a Trade or Business (Held for More Than 1 Year)

Description of property (1)	Date acquired (2)	Date Sold (3)	Gross Sales Price (4)	Accumulated Depreciation (5)	Tax Basis (6)	Gain or (loss) (4-6)
A)
B)
C)
D)

Step 2) Ordinary Gains and Losses (incl. property held 1 year or less). Enter zero if not applicable.

Description of property	Date acquired	Date Sold	Gross Sales Price	Accumulated Depreciation	Adj. Basis	Gain or (loss)

Step 3). Descriptions of Section 1245 property:

1) Description of property	2) Date acquired	3) Date Sold	4) Gain	5) Accumulated Depreciation	6) Amount of Gain reported as Ordinary (Lesser of 4 or 5)	7) Remaining Gain = (4) - (6)

3 (a) Net the gains/loss in A,B,C,D ____________

3 (b) Total Amount reported on (6) above: ______________________

3 (c) = 3(a) 3(b) _________ (Remaining Section 1231 Gain)

(Part II. continued) Summary Sheet for the Sales of Business Property

Step 4. Description of Section 1250 property

1) Description of property	2) Date acquired	3) Date Sold	4) Gain	5) Depreciation allowed (Accumulated Depreciation)	6) Unrecaptured 1250 Gain.	7) Remaining Gain = (4) - (6)

4(a) = Remaining Section 1231 Gain from 3(c): ________

4(b): Total Unrecaptured 1250 Gain on 6) above ________

4(c) = 4(a) 4(b) ________