During 1999, Trump Corporation Bought a Factory Building for $500,000

question 38

Multiple Choice

During 1999, Trump Corporation bought a factory building for $500,000. It deducted $180,000 of cost recovery deductions using straight-line depreciation while the building was in service. Trump sells the building in 2014 for $500,000. What are the tax consequences of the sale? Do not consider Trump's other transactions) .

• A) $180,000 Section 1231 gain.
• B) $180,000 unrecaptured Section 1250 gain.
• C) $180,000 recaptured under Section 1245.
• D) $180,000 Section 1250 gain
• E) $ 90,000 Section 1231 income; and $ 90,000 ordinary income, recaptured under Section 1250.

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