Jack L. Hyde owns several small office buildings in which he rents space to doctors, dentists, lawyers, and other professionals. Last year he sold two of his rental buildings. Hyde sold one of building, Doctors? Park, in which his basis was $400,000, for $450,000. Hyde sold the second building, Lawyers? Tower, for $470,000. Hyde?s basis in Lawyers? Tower was $540,000. He had owned both buildings for several years. Depreciation claimed by Jack was not accelerated or otherwise subject to any recapture rules.
(a) What is the character of Hyde?s gains and losses? Assume no other transactions during the year. (b) What is the result if Hyde?s basis in Lawyers? Tower, which he sold for $470,000, was $490,000 (Doctor's Park information same as originally set forth)?
(c) What is the result if Hyde?s basis in Doctors? Park was $490,000 (Lawyer's Tower information same as originally set forth)?
(d) What is the result if Doctor's Park was held for 11 months at the time of the sale (all other information the same as originally set forth)?