When an individual taxpayer sells depreciable real property used in a business for an amount that exceeds its original cost/original basis, how is the gain taxed

Answers

Answer 1

Answer:

The gain will be taxed as long-term capital gain and will be reported on the income taxes.

Explanation:

This capital gain by this individual taxpayer results from an increase in a capital asset's value. It is only considered to be realized when the taxpayer sells the asset. A capital gain may be regarded as a short-term (one year or less) capital gain or a long-term (more than one year) capital. The taxpayer is expected to report the capital gain on her income taxes.

Related Questions

gluon inc. is considering the purchase of a new high pressure glueball. it can purchase the glueball for $90,000 and sell its old low pressure glueball, which is fully depreciated, for $16,000. the new equipment has a 10-year useful life and will save $20,000 a year in expenses. the opportunity cost of capital is 8%, and the firm's tax rate is 21%. what is the equivalent annual saving from the purchase if gluon can depreciate 100% of the investment immediatley.

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Answer:

Explanation:

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $200,000 and sell its old low-pressure glueball, which is fully depreciated, for $36,000. The new equipment has a 10-year useful life and will save $44,000 a year in expenses. The opportunity cost of capital is 8%

Choose 3 macro factors (Political, Economical, Social, Technological, Environmental)

Answers

Answer: See explanation

Explanation:

Economic factors : Some economic factors that affect business can include Inflation, interest rates, exchange rates, taxes, recession and level of demand and supply. It should be noted that the economic factors of a business has an impact on the production level of the business and also the consumers decision making.

Technological factors: Technological factors has to do with the skills that are put into production, and the technologies that are used for production purpose. Technological factors include automation, 3D technology, speed, internet connectivity, wireless charging etc.

Political factors: Political factors also affect a business. Businesses need to be updated regarding the political and legal issues in order to thrive. These include copyright law, fraud law, employment law, safety law and discrimination law.

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