In 2022, Deion decided to sell all of the business assets he had been using in his sole proprietorship. He had owned and used the assets in his business for several years.

The business sale agreement specified that $280,000 of the $400,000 total sales price was allocable to a commercial building, and $20,000 was allocable to the land to which the building is attached. Deion had purchased the property several years ago, and he used it exclusively for business purposes during the period he owned it. Assuming Deion has a gain from the sale of his business assets, how will the gain from the sale of the land be treated for tax purposes?

Answer rating: 100% (QA)

Typically when a taxpayer sells a business asset any gain or loss from the sale is subject to taxati... View the full answer