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Travis purchased machinery on March 1, 2018, for $35,000. He used the machinery 100% in his small business until October 15, 2021, when he sold
Travis purchased machinery on March 1, 2018, for $35,000. He used the machinery 100% in his small business until October 15, 2021, when he sold it. He properly took $22,000 of depreciation expense for the tax years 2018 through 2021. Identify the amount and character of recognized gain/(loss) for this particular transaction:
Question: If sold for cash of $18,000...
- The amount of Ordinary income recapture is
- After considering recapture, the amount of remaining Section 1231 gain or loss (to go to the bucket) is
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