How is gain taxed

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Problem 1: Aneta sold an apartment building for $713,470 in 2019. She purchased the building in 2013 for $600,000 and has taken $151,806 in depreciation on the building. Assuming Aneta is married with regular taxable income of $500,000 and in the 35% tax bracket, how is her gain taxed?

Option 1: $151,806 at 25% and $113,470 at 20%.

Option 2: $113,470 at 0% and $151,806 at 28%.

Option 3: $113,470 at 25% and $151,806 at 20%.

Option 4: $151,806 at 28% and $113,470 at 20%.

Reference no: EM132727674

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