Describe the tax treatment for a noncorporate taxpayer in the 39.6% marginal tax bracket who sells each of the first two assets for $500,000 and each of the second two assets for $750,000. Each asset was purchased in 2012 and is used in a trade or business. There are no other gains and losses and no nonrecaptured Section 1231 losses.
$\begin{array}{lll}
&\text {Original Basis}&\text {Adjusted Basis}\
\text { Land } & \$ 350,000 & \$ 350,000 \
\text { Equipment 1 } & \$ 600,000 & \$ 450,000 \
\text { Equipment 2 } & \$ 600,000 & \$ 500,000 \
\text { Building } & \$ 550,000 & \$ 450,000
\end{array}$

Question

Describe the tax treatment for a noncorporate taxpayer in the 39.6% marginal tax bracket who sells each of the first two assets for $500,000 and each of the second two assets for $750,000. Each asset was purchased in 2012 and is used in a trade or business. There are no other gains and losses and no nonrecaptured Section 1231 losses.
 $\begin{array}{lll}
&\text {Original Basis}&\text {Adjusted Basis}\
\text { Land } & \$ 350,000 & \$ 350,000 \
\text { Equipment 1 } & \$ 600,000 & \$ 450,000 \
\text { Equipment 2 } & \$ 600,000 & \$ 500,000 \
\text { Building } & \$ 550,000 & \$ 450,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Describe the tax treatment for a noncorporate taxpayer in the 39.6% marginal tax bracket who sells each of the first two assets for $500,000 and each of the second two assets for $750,000. Each asset was purchased in 2012 and is used in a trade or business. There are no other gains and losses and no nonrecaptured Section 1231 losses.
 $\begin{array}{lll}
&\text {Original Basis}&\text {Adjusted Basis}\
\text { Land } & \$ 350,000 & \$ 350,000 \
\text { Equipment 1 } & \$ 600,000 & \$ 450,000 \
\text { Equipment 2 } & \$ 600,000 & \$ 500,000 \
\text { Building } & \$ 550,000 & \$ 450,000
\end{array}$

Describe the Tax Treatment for a Noncorporate Taxpayer in the 39.6