In 2018 Angela, a Single Taxpayer with No Dependents, Disposed

question 41

Essay

In 2018 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:

Productive Pasture

Land used for grazing livestock that is capable of producing a high yield of fodder for the animals.

Degraded Forest

Forest lands that have been severely diminished in quality and ecological function due to over-exploitation or poor management practices.

Decreased Soil Fertility

A reduction in the ability of soil to support plant growth, often due to factors like overuse, erosion, or contamination.

Premature Extinction

The phenomenon where species become extinct at a faster rate than natural due to human activities, before what is considered their natural lifecycle end.