Author Question: Harry owns equipment ($50,000 basis and $38,000 FMV) and a building ($140,000 basis and $156,000 ... (Read 28 times)

Anajune7 · **on:** Sep 13, 2020

Harry owns equipment ($50,000 basis and $38,000 FMV) and a building ($140,000 basis and $156,000 FMV), which are used in his business. Harry 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 Harry collects insurance proceeds equal to the assets' FMV. The tax result to Harry for this transaction is
◦ the involuntary conversions are treated as ordinary gains and losses.
◦ the involuntary conversions are treated as Sec. 1231 gains and losses.
◦ the loss on involuntary conversion is treated as a Sec. 1231 loss while the gain is treated as an ordinary gain.
◦ the loss on involuntary conversion is treated as an ordinary loss while the gain is treated as a Sec. 1231 gain.

TheDev123 · **Reply #1 on:** Sep 13, 2020

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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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