Umair sold some equipment he used in his business in 8/29/19 that was originally purchased for $65,000
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Question:
Umair sold some equipment he used in his business in 8/29/19 that was originally purchased for $65,000 on 11/21/18. The equipment was depreciated using the 7 yr MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer:
Assume Umair sold the equipment for $45,000:
1. What is the amount of realized gain or loss on the sale of equipment?
2. Is the nature of the gain or loss considered ordinary or long term?
Related Book For
Fundamentals of Taxation 2017
ISBN: 9781259752735
10th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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