Question

When an individual taxpayer sells depreciable real property used in a business for an amount that exceeds its original cost/original basis, how is the gain taxed

Answer 1

The gain will be taxed as long-term capital gain and will be reported on the income taxes.

Step-by-step explanation:

This capital gain by this individual taxpayer results from an increase in a capital asset's value. It is only considered to be realized when the taxpayer sells the asset. A capital gain may be regarded as a short-term (one year or less) capital gain or a long-term (more than one year) capital. The taxpayer is expected to report the capital gain on her income taxes.