Albert is the owner of Pavilion Construction Company, operated as a sole proprietorship. In 2022,...
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Albert is the owner of Pavilion Construction Company, operated as a sole proprietorship. In 2022, Albert sold the following business assets:
Asset Original Cost Tax Depreciation Amount Realized on Sale
Construction Crane $ 150,000 $ 70,000 $ 165,000
Warehouse 1,250,000 300,000 2,000,000
Albert had no other dispositions during the year, of either business or personal use assets. Assuming Alberts tax rate is 37% on ordinary income and 20% on net capital gains *, please determine his tax liability associated with the above two dispositions.
* (Net Capital Gain refers to the portion of net long-term capital gains taxed at the preferential rates of 0/15/25%).
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