Suzy, a single taxpayer, sells her residential rental property in March 2021 for $400,000. Suzy acquired the property in July 2011 for $300,000 and has been depreciating it using the straight-line method for realty under MACRS. Assume the amount of depreciation taken is $114,000. Suzy has taxable income of $190,000 and is in the 32% marginal income tax bracket.

What is the amount and character of the gain recognized as a result of the sale?

Answer rating: 100% (QA)

Given Purchase Price 300000 Depreciation Taken 114000 Selling Price 400000 Marginal Income Tax Brack... View the full answer