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Jed Sells an Office Building During the Current Year for $800,000

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Essay

Jed sells an office building during the current year for $800,000. The building was purchased in 1980 for $350,000 depreciated the building under an accelerated method, but it is now fully depreciated. Jed has never had any oth 1231 transactions.
a. What is the recognized gain or loss on the sale of the building and the character of the gain?
b. How will the gain be taxed?
c. Assume the building was purchased in 1981 and depreciated under ACRS. How will the gain be taxed?


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