Jess sold a piece of equipment she used in her business.The equipment cost Jess $51,500 several years ago and had accumulated depreciation taken in the amount of $20,300.Jess sold the equipment for $35,000.
a.What is her Section 1245 property gain?
b.How much of the gain is subject to recapture at the 25% tax rate?
c.How much of the gain is ordinary income?

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The Answer of Jess sold a piece of equipment she used in her business.The equipment cost Jess $51,500 several years ago and had accumulated depreciation taken in the amount of $20,300.Jess sold the equipment for $35,000.
a.What is her Section 1245 property gain?
b.How much of the gain is subject to recapture at the 25% tax rate?
c.How much of the gain is ordinary income?

Jess Sold a Piece of Equipment She Used in Her