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Author Question: Elaine owns equipment ($23,000 basis and $15,000 FMV) and a building ($136,000 basis and $148,000 ... (Read 111 times)

itsmyluck

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on: Sep 13, 2020

Question 1

Mark owns an unincorporated business and has $20,000 of Section 1231 gains and $22,000 of Section 1231 losses. He must report a net capital loss of $2,000 on his tax return.
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Question 2

Elaine owns equipment ($23,000 basis and $15,000 FMV) and a building ($136,000 basis and $148,000 FMV), which are used in her business. Elaine uses straight-line depreciation for both assets, which were acquired several years ago. Both the equipment and the building are destroyed in a fire, and Elaine collects insurance proceeds equal to the assets' FMV. 
a.   What is the tax treatment of these two transactions?
b.   Assume that Elaine is only able to collect $3,000 from the insurance company for the equipment loss.  What is the tax treatment of the two transactions (assume the basis and insurance reimbursement remain the same for the building).
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by itsmyluck on Sep 13, 2020

cloudre37

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Reply #1 on: Sep 13, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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itsmyluck

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Reply 2 on: Sep 13, 2020
Wow, this really help

cassie_ragen

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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