Part 4

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 IV: Netting Process

Short-term Capital Gains and Loss Carry-overs	Long-term Capital Gain (LTCG)
	Collectibles	Unrecaptured 1250 Gain	Net Sec. 1231 Gain	Other Long-term capital gain
Net the Short-term Capital Gain or Losses above = _______		Amount from Part II, 4(b) __________	Amount from Part II, 4(c) ________	Part III, Net LTCG, excluding Collectibles _____
Use the above amount to net against Collectibles, Unrecaptured Sec. 1250 Gain, LTCG, etc. on the right
Net Capital Gain: