Tonya jefferson, a sole proprietor, runs a successful lobbying business in washington, d. c. she doesn't sell many business assets, but she is planning on retiring and selling her historic townhouse, from which she runs her business in order to buy a place somewhere sunny and warm. tonya's townhouse is worth $1,000,000 and the land is worth another $1,000,000. the original basis in the townhouse was $600,000, and she has claimed $250,000 of depreciation deductions against the asset over the years. the original basis in the land was $500,000. tonya has located a buyer that would like to finalize the transaction in december of the current year. tonya's marginal ordinary income tax rate is 35 percent.

in addition to the original facts, assume that tonya reports the following nonrecaptured net §1231 loss:

net §1231
year gains/(losses)
year 1 $(200,000)
year 2 0
year 3 0
year 4 0
year 5 0
year 6 (current year) ?
what amount of gain or loss does tonya recognize on the sale?

what is the character of the gain or loss?

as tonya's tax advisor, you suggest that tonya sell the townhouse in year 7 in order to reduce her taxes.

c-1. what is the character of the gain or loss if tonya sells the townhouse in year 7?

$250,000 unrecaptured §1250 and 900,000 other §1231 gain
1,150,000 unrecaptured §1250
$900,000 unrecaptured §1250 and 250,000 other §1231 gain

c-2. what would tonya's tax liability or (tax savings) be if she sells the townhouse in year 7?

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.

Which two of the following are benefits of consumer programs