Jonah owned a rental building (but not the land)that was destroyed by a fire.The building was insured and Jonah has a $66,000 gain because his insurance recovery exceeded his adjusted basis for the building.Jonah does not intend to replace the building.Jonah had taken $45,000 of depreciation on the building,has no § 1231 lookback loss,has no other § 1231 transactions for the year,and has no Schedule D transactions for the year.What is the final nature of Jonah's gain for the year and what tax rate(s)apply to the gain?

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The Answer of Jonah owned a rental building (but not the land)that was destroyed by a fire.The building was insured and Jonah has a $66,000 gain because his insurance recovery exceeded his adjusted basis for the building.Jonah does not intend to replace the building.Jonah had taken $45,000 of depreciation on the building,has no § 1231 lookback loss,has no other § 1231 transactions for the year,and has no Schedule D transactions for the year.What is the final nature of Jonah's gain for the year and what tax rate(s)apply to the gain?

Jonah Owned a Rental Building (But Not the Land)that Was