During his working years, your client ran a construction business that was very successful in...
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During his working years, your client ran a construction business that was very successful in the local community. When he retired, he kept one of the front-end loaders in order to use it on his large estate. The front-end loader was originally purchased for the business at a cost of $150,000 and your client had taken $100,000 of depreciation by the time he retired. He passed away last month, and the front-end loader was valued in his estate at $50,000. If his daughter inherits the front-end loader, and sells it for $55,000 two months after your client's death, what is the income tax treatment on the sale? A. $5,000 ordinary income. B. \$5,000 long-term capital gain. C. \$5,000 short-term capital gain. D. No tax impact A B c D
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