In 2017 Angela, a Single Taxpayer with No Dependents, Disposed

question 33

Essay

In 2017 Angela, a single taxpayer with no dependents, disposed of for $44,000 a business building which cost $100,000. $60,000 of depreciation had been taken on the building. Angela has a short-term capital loss of $3,000 this year. She has taxable income (not related to property transactions) of $125,000. She has no § 1231 lookback loss. What is the amount and nature of the gain or loss, what is Angela's taxable income, and what is her tax on the taxable income?

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Definitions:

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Ethical Imperatives

Moral obligations or principles that guide individuals' actions in accordance with what is considered right or just.

Critical Thinkers

Individuals who actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach a conclusion.

Reasonable People

Individuals who exercise average care, skill, and judgment in conduct and who are presumed to have a certain level of knowledge when making decisions.