Towns a machine that was purchased three years ago that cost $180,000 and accumulated depreciation of $43,000 1. What is T's basis on the machine? Under the following scenarios, calculate the 1231 Gain or loss; the amount, if any, of depreciation recapture (indicate whether it is 1245 or 1250 recapture); indicate the portion of the gain or loss that is taxed at ordinary rates and the portion that is LTCG; if there is a loss how much of the loss. carries over? (Assume date of sale is today.) 2. Sold the machine for $155,000 3. Sold the machine for $130,000 4. Sold the machine for $200,000

Towns a machine that was purchased three years ago that cost $180,000 and accumulated depreciation of $43,000 1. What is T's basis on the machine? Under the following scenarios, calculate the 1231 Gain or loss; the amount, if any, of depreciation recapture (indicate whether it is 1245 or 1250 recapture); indicate the portion of the gain or loss that is taxed at ordinary rates and the portion that is LTCG; if there is a loss how much of the loss. carries over? (Assume date of sale is today.) 2. Sold the machine for $155,000 3. Sold the machine for $130,000 4. Sold the machine for $200,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 6CE

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