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Note: CY = 2019 Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a
Note: CY = 2019
- Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 30 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem):
- What is the amount and character of Harts recognized gain if the asset is tangible personal property sold for $450,000? What effect does the sale have on Harts tax liability for the year?
- What is the amount and character of Harts recognized gain if the asset is tangible personal property sold for $550,000? What effect does the sale have on Harts tax liability for the year
- What is the amount and character of Harts recognized gain if the asset is tangible personal property sold for $350,000? What effect does the sale have on Harts tax liability for the year?
- What is the amount and character of Harts recognized gain if the asset is a non-residential building sold for $450,000? What effect does the sale have on Harts tax liability for the year?
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