Jasmine owned rental real estate that she sold to her tenant in an installment sale. Jasmine acquired the property in 2008 for $1,840,000; took $644,000 of depreciation on it; and sold it for $1,012,000, receiving $101,200 immediately and the balance (plus interest at a market rate) in equal payments of $91,080 for 10 years. What is the nature of the recognized gain or loss from this transaction?

The nature of recognized gain or loss from this transaction is known as capital gain or loss and its important for the computation of individual income taxes

Explanation:

Given the above information, the gain or loss on sale of real estate is computed as;

Original cost

$1,840,000

Less:

Depreciation

($644,000)

Current value of property

$1,196,000

Less:

Sales value

($1,012,000)

Loss on sale

$184,000

Here, there is loss on sale because sales is less than the present value of the property taken into consideration, hence a capital loss is recognized.

an important city to the south and the region's capital is c. kiev