A business taxpayer sells depreciable business property with an adjusted basis of $40,000 for $32,000.The taxpayer held the property for more than a year.The taxpayer has an $8,000 long-term capital loss.

Question

Quizplus · Accepted Answer

The taxpayer has a long-term capital loss of $8,000, but since the selling price is lower than the adjusted basis, the taxpayer would actually have a capital loss of $8,000 + the difference between the selling price and the adjusted basis, which is $8,000 + ($40,000 - $32,000) = $16,000.

A Business Taxpayer Sells Depreciable Business Property with an Adjusted