T purchases a rental home on June 1 1996 for $80,000 allocating $20,000 to the land and $60,000 to the building. On 9/15/2012 T spends $2,000 for a stove and refrigerator. T used MACRS depreciation on these items. On 6/1/2015 T sells the house for $100,700. The proceeds are allocated as: $75,000 house, $25,000 Land, Appliances $700.

Assume depreciation on the house was $41,455 and depreciation on the appliances was $1,539. What is the Section 1231 gain?

Answer rating: 100% (QA)

Sodution STEP 1TO1 Gain as per Section 1231 Sale panice 75000 Less Basis WOSIKing 38545 Se... View the full answer