Solved

A Taxpayer Sells Equipment Used in Her Business for $50,000

Question 18

True/False

A taxpayer sells equipment used in her business for $50,000.She purchased the equipment three years ago for $90,000 and claimed $35,000 of depreciation over the three years of usage.The recapture provisions of Sec.1245 will result in the taxpayer recognizing some ordinary income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q13: Cassie owns equipment ($45,000 basis and $30,000

Q14: Depreciable property placed in service nine months

Q15: Maura makes a gift of a van

Q16: Trena LLC,a tax partnership owned equally by

Q17: All of the following statements regarding Sec.1245

Q19: Gifts of appreciated depreciable property may trigger

Q20: The additional recapture under Sec.291 is 25%

Q21: Octet Corporation placed a small storage building

Q22: During the current year,George recognizes a $30,000

Q23: If the recognized losses resulting from involuntary