US Taxation 2018

Raymond provides the following information related to assets used in a trade or business which have been sold during the year. All assets have been held for over one year.

Equipment = $50,000 recognized gain. Accelerated Depreciation Taken = $35,000. Straight line would have been $20,000

SF Building = $200,000 recognized gain. Straight line depreciation taken = $ 85,000.

San Jose Land = $75,000 recognized gain

Not including the above sales, Raymond estimates his current year's taxable income to be around $150,000, which also includes IBM dividend income of $5,000. For simplicity, let us assume dividend is taxed at a flat 15% rate.

Raymond wants to have enough cash for his taxes by next April 15, and has asked you to estimate his current year's tax liability.