A taxpayer sells equipment used in her business for $50,000.She purchased the equipment three years ago for $90,000 and claimed $35,000 of depreciation over the three years of usage.The recapture provisions of Sec.1245 will result in the taxpayer recognizing some ordinary income.

Question

Quizplus · Accepted Answer

The Answer of A taxpayer sells equipment used in her business for $50,000.She purchased the equipment three years ago for $90,000 and claimed $35,000 of depreciation over the three years of usage.The recapture provisions of Sec.1245 will result in the taxpayer recognizing some ordinary income.

A Taxpayer Sells Equipment Used in Her Business for $50,000