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Capital Gains and Losses, Section 1245 Recapture Rule, Unrecaptured Section 1250 Gain (LO. 4, 8, 9) Anton purchases a building on May 4, 2001, at a cost of $320,000. The land is properly allocated $20,000 of the cost. Anton sells the building on October 18, 2019, for $320,000. Assume that the building is an apartment building held for investment. In addition to the sale of the building, Anton has the following capital gains and losses during 2019: $4,000 6,800 Short-term capital loss Collectibles gain Long-term capital gain Long-term capital loss carryover from 2018 14,500 6,000 Anton is single and has a taxable income of $163,800 without considering his capital gains and losses Assume the accumulated depreciation at the time of the sale is $189,991. If required, round any computations to the nearest dollar. Refer to the Tax Rate Schedules to answer the following questions. Anton has a net long-term capital gain of $ taxed at 15%, $ will be taxed at 25% and $ total tax liability is $ . When computing his total income tax liability $ will be will be taxed at the regular income tax rates. Therefore, his will be taxed at the regular 2019 INDIVIDUAL TAX RATE SCHEDULES Table B-1 Single Taxpayers If Taxable Income Is Over of the Amount Over The Tax Is 0 0 9,701 39,476 84,201 160,726 204,101 510,301 But Not Over 9,700 39,475 84,200 160,725 204,100 510,300 10% $ 970.00 + 12% 4,543.00 + 22% 14,382.00 +24% 32,748.00 + 32% 46,628.50 + 35% 153,798.50 + 37% 9,700 39,475 84,200 160,725 204,100 510,300 Table B-2 Married Taxpayers Filing Jointly and surviving Spouse But Not Over The Tax Is If Taxable income Is Over $ 0 19,401 78,951 168,401 321,451 408,201 612,351 19,400 78,950 168,400 321,450 408,200 612,350 10% $ 1,940.00 + 12% 9,086.00 + 22% 28,675.00 + 24% 65,497.00 + 32% 93,257.00 + 35% 164,709.50 + 37% of the Amount Over 0 29,400 78,950 168,400 321,450 408,200 612,350 Table B-4 Married Taxpayers, Filing Separately But Not Over of the Amount Over The Tax is If Taxable income Is Over $ 0 9,701 39,476 84,201 160,726 204,101 306,176 9,700 39,475 84,200 160,725 204,100 306,175 10% $ 970.00 + 12% 4,543.00 + 22% 14,382.50 + 24% 32,748.50 + 32% 46,628.50 + 35% 82,354.75 + 37% 9,700 39,475 84,200 160,725 204,100 306,175

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