Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in September of 2015 for $60,000 (assume these were business-use assets, were the only assets purchased during each of these tax years, and that no §179 expense or bonus depreciation was taken). He sells both of these assets in March 2018 for $700,000 and $42,500, respectively. As of 12/31/2017, Alphonso had taken depreciation on the building of $132,659, and depreciation on the machinery of $33,762. During 2018, Alphonso also had a casualty loss on business equipment of ($5,000) and a casualty gain from insurance proceeds on previously stolen business property of $9,000 (ignore depreciation on this asset). Alphonso had the following §1231 gains/losses during the prior 5 years: (Space provided for your work below) 2013: (5,000) 2014: (12,000) 2015: 4,000 2016: (3,000) 2017: 10,000
Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in September of 2015 for $60,000 (assume these were business-use assets, were the only assets purchased during each of these tax years, and that no §179 expense or bonus
2013: (5,000)
2014: (12,000)
2015: 4,000
2016: (3,000)
2017: 10,000
How much of Alphonso’s income from these transactions will be
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