On January 1, 2006, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on January 3, 2015, when its adjusted basis was $38,000. Assuming the property is residential real property, there is a 1231 gain of $58000, of which how much is treated as unrecaptured 1250 gain?
On January 1, 2006, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on January 3, 2015, when its adjusted basis was $38,000. Assuming the property is residential real property, there is a 1231 gain of $58000, of which how much is treated as unrecaptured 1250 gain?
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 76P
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how much is treated as unrecaptured 1250 gain?
Transcribed Image Text:On January 1, 2006, Stephanie Bridges acquired
depreciable real property for $50,000. She used straight-line
depreciation to compute the asset's cost recovery. The
asset was sold for $96,000 on January 3, 2015, when its
adjusted basis was $38,000.
Assuming the property is residential real property, there is a
1231 gain of $58000, of which how much is treated as
unrecaptured 1250 gain?
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