Question

Hart , an individual , bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent.

Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem)

what is the amount and charter of Hart's recognised gain and loss if the asset is tangible personal property sold for $ 550,000 .( solved )

due to this sale , what tax effect does Hart have for the year ?

Answer 1

i) Calculating  the amount and charter of Hart's recognised gain and loss if the asset is tangible personal property sold

Amount realized - Net carry value

= $350,000 – $400,000

= $50,000 loss

The loss term investment gain loss or captial loss onn tangible personal property was greater than a year

i) Hart single up to $3,000 and the investment loss will be adjustment from the income of other sources.32% was the present annual tax deduction

according to section 1245

tax @32% = $16,000

Tax savings = $16,000

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....