The Chart Below Describes the § 1231 Assets Sold by the Tan

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The Answer is The stamping machine is sold at an $8,264 loss which is a § 1231 loss.The factory building yields a § 1231 gain of $28,838.There is no § 1250 depreciation recapture because straightline depreciation was used .The tractor has $60,000 of gain,$52,000 of ordinary gain due to § 1245 depreciation recapture (equal to the deprecation taken)and $8,000 of § 1231 gain.The $18,000 gain on the overhead crane is ordinary due to § 1245 depreciation recapture.$14,574 of net § 1231 gain ($28,838 + $8,000 - $8,264 - $14,000 § 1231 lookback loss)is treated as longterm capital gain.The chart below provides details on the computations:

\begin{array}{llllllll}&&&&&& ext { Sale } & ext { Gain } \ ext { Asset }& ext { Acquired } & ext { Sold }& ext { Cost }& ext { Depreciation }& ext { Basis }& ext { Price } & ext { (Loss) } \ ext { Stamping }\ ext { machine }&3 / 10 / 10 & 8 / 10 / 2014 & \$ 40,000 & \$ 29,736 & \$ 10,264 & \$ 2,000 & (\$ 8,264) \ ext { Factory }\ ext { building }&2 / 12 / 07 & 7 / 23 / 2014 & 80,000 & 18,838 & 61,162 & 90,000 & 28,838\ ext { Tractor } & 5 / 16 / 09 & 11 / 13 / 2014 & 52,000 & 52,000 & -0- & 60,000 & 60,000 \ ext { Overhead crane } & 11 / 12 / 03 & 2 / 25 / 2014 & 74,000 & 74,000 & -0- & 18,000 & 18,000\end{array}

The Chart Below Describes the § 1231 Assets Sold by the Tan

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The Chart Below Describes the § 1231 Assets Sold by the Tan

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