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Sissie owns two items of business equipment. Both were purchased in 2011 for $100,000, both have a 7-year MACRS recovery

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Sissie owns two items of business equipment. Both were purchased in 2011 for $100,000, both have a 7-year MACRS recovery period, and both have an adjusted basis of $37,490. Sissie is considering selling these assets in 2015. One of them is worth $60,000, and the other is worth $23,000. Because both items were used in her business, Sissie simply assumes that the loss on one will be offset against the gain from the other and that the net gain or loss will increase or reduce her business income. What is the amount and character of Sissie’s gain or loss?

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South Western Federal Taxation 2016 Individual Income Taxes

South Western Federal Taxation 2016 Individual Income Taxes

ISBN: 9781305393301

39th Edition

Authors: James H. Boyd, William H. Jr. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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Question Details
Chapter # 17- Property Transactions: § 1231 and Recapture Provisions
Section: Discussion Questions
Problem: 25
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Question Posted: September 17, 2023 07:55:34
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