Mrs. Brown is selling an office property she has owned for five years for $1,200,000...
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Mrs. Brown is selling an office property she has owned for five years for $1,200,000 and will pay a cost of sale of 3 percent of the sale price and the current mortgage balance is $428,000. She paid $700,000 for the property and incurred $40,000 in acquisition costs. The allocation for improvements was 80 percent. Mrs. Browns tax rates are 37 percent for ordinary income, 20 percent for capital gains, and 25 percent for cost recovery recapture. What would be Mrs. Browns Sale Proceeds Before Tax if she closes on the sale?
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