Author Question: Yelenis, whose tax rate is 28%, sells one Sec. 1231 asset this year, resulting in a $50,000 gain. ... (Read 59 times)

segrsyd · **on:** Sep 13, 2020

Question 1

Why did Congress establish favorable treatment for 1231 assets?
◦ to encourage the mobility of capital
◦ to allow a larger deduction for losses
◦ to help business owners replace assets which had declined in value
◦ All of these

Question 2

Yelenis, whose tax rate is 28%, sells one Sec. 1231 asset this year, resulting in a $50,000 gain. Included in the $50,000 Sec. 1231 gain is $30,000 of unrecaptured Sec. 1250 gain. A review of Yelenis tax files for the past five years indicates one prior Sec. 1231 sale which resulted in a $14,000 loss. The gain will be taxed as
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Harbringer · **Reply #1 on:** Sep 13, 2020

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