I'll Center sells an income producing property for a $42,000 profit.what is the tax implication for the seller?

A. No capital gains tax is required if the profits are reinvested within 24 months
B. Capitol gains tax must be paid on the entire profit, less any allowable depreciation
C. Capital gains tax must be paid on 20% of the profit
D. The alternative minimum tax must be paid

Answer: B. Capitol gains tax must be paid on the entire profit, less any allowable depreciation

Business

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