Cassie owns equipment ($45,000 basis and $30,000 FMV) and a building ($152,000 basis and $158,000 FMV),...

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Cassie owns equipment ($45,000 basis and $30,000 FMV) and a building ($152,000 basis and $158,000 FMV), which are used in Cas

business accounting

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Answer 1

Answer #1

The question might be incomplete but basis information 6000 should be loss

Assuming value of asset is 10yrs

	Equipment
Value	Amount	Depreciation for 2yrs	Net
value	45000	9000	36000
FMV			30000
			6000loss

A net section 1231 gain is taxed at the lower capital gain rates.
A net section 1231 loss is fully deductible as an ordinary loss.

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Answer 2

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