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SEE PART 2: BUSINESSES
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In 2025, a calendar-year sole proprietor sold a delivery truck for $45,000. The truck had been held for more than one year; it had an adjusted basis of $20,000, and $30,000 of depreciation had been claimed. The sole proprietor also sold land used in the business for $50,000. The land had also been held for more than one year and had an adjusted basis of $30,000. In 2023, the business had a $10,000 section 1231 loss that has not yet been recaptured. There were no other section 1231 transactions in 2025. What amount of the combined gain is ordinary income?
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