a. Determine the amount and character of the recognized gain from the sale of the building. There is a gain of $fill in the blank from the sale of the building, of which $fill in the blank is ordinary income due to § 1250 recapture. b. Determine the amount and character of the recognized gain from the sale of the land. The § 1231 gain from the sale of the land is $fill in the blank, of which $fill in the blank is subject to recapture.
Problem 14-76 (LO. 8, 9, 10)
On May 2, 1990, Hannah Weather (Social Security number: 111-22-3333) acquired residential real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On August 20, 2019, the building, which then had an adjusted basis of $0, was sold for $545,000 and the land for $200,000.
If an amount is zero, enter "0".
a. Determine the amount and character of the recognized gain from the sale of the building.
There is a gain of $fill in the blank from the sale of the building, of which $fill in the blank is ordinary income due to § 1250 recapture.
b. Determine the amount and character of the recognized gain from the sale of the land.
The § 1231 gain from the sale of the land is $fill in the blank, of which $fill in the blank is subject to recapture.
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