Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and capital gains tax rates for reference
Brandon an individual, began business four years ago and has sold 1231 assets with $5,700 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year,Brandon sold the following business assets:
Asset original cost accumulated deprection gain/loss
Machinery $31,400 $8,400 $10,700
Land 54,000 0 27,000
Building 118,000 34,000 (10,000)
Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and
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