Jon Owned a Rental Building (But Not the Land)that Was

Essay

Jon owned a rental building (but not the land)that was destroyed by a hurricane.The building was insured and Jon has a $56,000 gain because his insurance recovery exceeded his adjusted basis for the building.Jon does not intend to replace the building.Jon had taken $45,000 of depreciation on the building,has no § 1231 lookback loss,has no other § 1231 transactions for the year,and has no Schedule D transactions for the year.What is the final nature of Jon's gain for the year and what tax rate(s)apply to the gain?