ZuoTi.Pro
Question

in 2016, Shari purchased a $20,000 piece of equipment for exclusive use in her business. she claimed a $6000 179 deducti...

in 2016, Shari purchased a $20,000 piece of equipment for exclusive use in her business. she claimed a $6000 179 deduction and $6654 MACRS depreciation. she sold the equipment in November 2018 for $7000. what is the amount and type of gain or loss and where on form 4797 does Shari report the sale?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

FORM 4797 is a tax form which is required to be filed with IRS( internal revenue service ) for any gains realized from the sale or the transfer of business property.

PROBLEM SOLUTION :

Purchased price is $20,000, deductions u/s 179 is $6000, and depreciation is $6654

purchase price = $20000

(-) deductions and depreciation(6000+6654) = $12654

cost =$ 7346

sale price is $7000

hence encountered the loss of $346

Form 4797 has three parts, in this case it belongs to part 1 as the asset is sold at loss and has been held for more than year.

0 0
Add a comment
Know the answer?
Add Answer to:
in 2016, Shari purchased a $20,000 piece of equipment for exclusive use in her business. she claimed a $6000 179 deducti...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 13 of 75. In January 2015, Sue purchased and placed into service a $20,000 piece...

    Question 13 of 75. In January 2015, Sue purchased and placed into service a $20,000 piece of equipment for exclusive use in her busines. Since then, she claimed a $6,000 Section 179 deduction and $6,654 MACRS depreciation. She sold the equipment in November 2017 for $7,000. What is the amount and type of gain or loss, and where on Form 4797 does Sue report the sale? O $346 $1231 loss, Part I O $346 $1231 gain, Part. O $346 $1245...

  • Question 40 of 75. Leon sold residential rental property he had owned for three years. As...

    Question 40 of 75. Leon sold residential rental property he had owned for three years. As part of this sale, Leon realized gain on the sale of the rental house he was depreciating using regular MACRS. Which Code section describes the gain on the LAND? 。51231 。51245. O §1250. O §1254. Question 13 of 75 In January 2015, Sue purchased and placed into service a $20,000 piece of equipment for exclusive use in her business Since then, she claimed a...

  • In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a...

    In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRS GDS (no SL election). The equipment was placed in service on September 10, 2016. This was the only asset that Olga Co. placed in service in 2016. Olga Co. did not elect Section 179 deduction and elected out of Section 168(k) bonus depreciation. What is Olga Co.'s depreciation deduction for 2016 (the year the...

  • Ruth sold land she purchased three months earlier for use in her business. Her cost and...

    Ruth sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land is $75,000. She incurred $5000 in expenses related to the sale. The buyer paid $80,000 cash and assumed Ruth $25,000 mortgage on the property. What is the amount of her gain, and Ware on form 4797 will she report the sale? a. $25,000, part I b. $25,000, part II c. $30,000, part III d. $30,000, part IV

  • In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a...

    In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRSGDS (no SL election). The equipment was placed in service on September 10, 2016. This was the only asset that Olga Co. placed in service in 2016. Olga Co. did not elect Section179 deduction and elected out of Section 168(k) bonus depreciation. Olga Co. sold the equipment on February 1, 2019. What is Olga Co.'s...

  • 9. In 2016, Olive’s Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A)...

    9. In 2016, Olive’s Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A) for $1,000,000. Olive’s owned Equipment A for more than a year and depreciation deductions totaled $600,000. Assume Olive’s sold Equipment A for $1,150,000 in 2019, and Olive’s paid $50,000 in selling expenses. What is Olive’s recognized gain on the sale of Equipment A in 2019? 10.What amount of Olive’s recognized gain is recaptured as ordinary income (1245 recapture)? 11.  What is the amount of Olive’s...

  • Question 13 of 75. Ruth sold land she purchased three months earlier for use in her...

    Question 13 of 75. Ruth sold land she purchased three months earlier for use in her business. Her cost (and adjusted basis) in the land is $75,000. She incurred $5,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed Ruth's $25,000 mortgage on the property. What is the amount of her gain, and where on Form 4797 will she report the sale? O $25.000, Part 1 O $25,000, Part II $30,000, Part 111 O $30,000, Part...

  • In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a...

    In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRSGDS (no SL election). The equipment was placed in service on September 10, 2020. This was the only asset that Oscar Co. placed in service in 2020. Oscar Co. did not electSection 179 deductions. Oscar Co. did not elect out of Section 168(k) bonus depreciation. What will Oscar’s depreciation deduction be for 2021?

  • In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a...

    In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRSGDS (no SL election). The equipment was placed in service on September 10, 2020. This was the only asset that Oscar Co. placed in service in 2020. Oscar Co. did not electSection 179 deductions. Oscar Co. did not elect out of Section 168(k) bonus depreciation. What is Oscar Co.'s total depreciation deduction for 2020?

  • A taxpayer purchased used business equipment on November 20, 2016, for $100,000. The equipment was sold...

    A taxpayer purchased used business equipment on November 20, 2016, for $100,000. The equipment was sold for $60,000 on August 25, 2018. Depreciation information is as follows: Accelerated depreciation taken $47,500 Straight-line depreciation (7-year life) would have been 28,500 How will the gain or loss on the sale of this equipment be treated for tax purposes? Question 18 options: 1) $7,500 ordinary income 2) $7,500 long-term capital gain 3) $7,500 short-term capital gain 4) $7,500 Section 1231 gain 5) None...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT