Disregarding land value, Vanessa purchased a residential rental building on November 12, 2014 for $276,000. She sold the building on May 19, 2019 for $395,000. The allowable depreciation on the property was $45,159. The sale of the building falls under which section of the Internal Revenue Code? 

Section 1231 gain of $164,159.

Section 1245 gain of $45,159; and 

Section 1231 gain of $119,000. 

Un-recaptured Section 1250 gain of $164,159. 

Un-recaptured Section 1250 gain of $45,159; and 

Section 1231 gain of $119,000.

Answer rating: 100% (QA)

Cost 276000 Less Allowable Depreciation 45159 Adjusted Basis 230841 Sal... View the full answer