President1988

also to more directly answer question

the first time accumlated dep was subtracted so we can get book value, nothing more

now that we have that book value of 459404

we did 723469 - 459404 = 264065 to get the gain on sale

now we subtract the dep out of it because it has to be treated in a diff way like i said in the previous post

then we are subtracting each "type of gain" after multiplying it by the tax rate applicable to that type of gain

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has the sale price been


509404

your gain is 509404-459404=50000
since that 50,000 is the than the dep, it is all recapture dep

and you pay tax of (509404-459404)*0.25

nothing to be paid in the 0.2 bracket, because no capital gain

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has the sale price been 459404

you pay nothing in taxes

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so this covers all 3 possible events