question archive Steven established a sole proprietorship in 2010
Steven established a sole proprietorship in 2010
Subject:AccountingPrice: Bought3
Steven established a sole proprietorship in 2010. He sold section 1231 assets at a loss in 2013 and 2014. He had only sold section 1231 assets at a gain before 2013. In 2015, he could sell a section 1231 asset at a gain and would like to have the gain taxed as a long-term capital gain. What issue is Steven facing?12. In the current year, an individual taxpayer has net long-term capital gain from disposition of capital assets and has unrecaptured section 1250 gain. What would the circumstances have to be for the unrecaptured section 1250 gain to be taxed at 25%18. Complete the following statements regarding special recapture provisions.a. Corporations selling depreciable real property are required to recapture as ordinary income the ____________________ of two amounts: (1) ________________________ % of the recognized gain or (2)________________________% of the depreciation taken.b. When the sale or exchange of property, which in the hands of the transfer is depreciable property, is between certain related parties, _____________________ recognized is ordinary income.c. Intangible drilling and development costs are subject to _________________ recapture when the property is disposed of.26. An apartment building was acquired in 2006. The depreciation taken on the building was $123,000, and the building was sold for a $34,00 gain. What is the maximum amount of 25% gain?27. An individual taxpayer has $25,000 of section 1231 gain from the disposition of nonresidential real estate. Straight-line depreciation of $43,000 was deducted on the real estate. The taxpayer also has a section 1231 loss of $56,000 from the sale of equipment. How much of the section 1231 gain is taxed as unrecaptured section 1250 gain?
