7. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. You were able to start renting units in July of 2010. The complex was sold in December of 2019 for $750,000. What is the depreciation deduction for the first year? b. $36,370 d. None of these (a) $19,700 $16,670

7. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. You were able to start renting units in July of 2010. The complex was sold in December of 2019 for $750,000. What is the depreciation deduction for the first year? b. $36,370 d. None of these (a) $19,700 $16,670

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 1MCQ: Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000...

See similar textbooks

Similar questions

8. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. The complex was sold in December of 2018 for $750,000. What is the depreciation deduction for the last year? a. $26,133.75 b. $34,845 $27,270 c. $36,360
On October 1, you purchased a residential home in which lo locale your professional office for $180,000. The appraisal is divided into $30,000 for the land and $150,000 for the building.(a) In your first year of ownership, how much can you deduct for depreciationfor tax purposes?(b) Suppose that you sold the property at $197,000 at the end of the fourth year of ownership. What is the book value of the property?
On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Click here to access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS.$fill in the blank 98b1bc044f93fcc_1 b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
1 John and Mary had the following transactions for 2020. Calulate net capital gain/loss, how much to deduct in 2020 and any carryford to 2021 Short Term capital loss (8,000) Long term capital gain 24,000 Long term capital loss (30,000) 2 John purchased an office building in 2010 for $450,000. In 2020 he sells the building for $950.000. John's remaining mortgage on the building was $150,000. The buyer paid $650,000 and assumed the remainig debt on the building. John had taken $100,000 depreciation on the building. Calculate a -Adjusted basis in the building b- Any realized gain or loss on the building
Fairfield Properties owns real property that is MACRS depreciated with n = 39 years. They paid $3.4 million for the apartment complex and hope to sell it after 10 years of ownership for 50% more than the book value at that time. Compare the expected selling price with the amount that Fairfield paid for the property.
Noah and Joan Arc's Tax Return (2022) I need help figuring out the depreciation of the rental property. I'm assuming that the land is accounted for seperately. The home was acquired for $85,000 in 2006. On May 12, 2022, the Arcs installed new fixtures (7 - year recovery period) at a cost of $ 3,500. They wish to maximize the cost recovery on the new fixtures but make no elections.
J1. Raghu Purchased a house in 2021 to use as a rental. What is the spaces in the property if his expenses were as follows: $250,000 purchase price 30,000 which was a attributed to the land value $2500 point paid on the mortgage $250 legal fees $175 title insurance $1200 home owners insurance $1500 previously due real estate tax
1) You purchased a Class 1 commercial building as an investment property two years ago. During the current year, you received $8,000 in rent receipts and paid the following expenses; interest of $6,000, property taxes of $2,000, heat, light and power of $500, and maintenance of $300. The UCC of the commercial building was $60,000 on January 1. You are able to claim a rental loss in the current year? A) True B) False
Yas.8 Eve acquired a personal residence in 20x0 for $700,000. In January, 20x5, when the fair market value was $800,000, she converted the residence to rental property. (Ignore any allocation to land.) a) Calculate the amount of cost recovery that can be taken in 20x5. b) What would your answer be if the property were worth only $50,000 in 20x5?
Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What will be the book value of this equipment at the end of three years if she ignores bonus depreciation? Group of answer choices $18,280.20 $19,468.80 $11,681.28 $22,672.00
Max purchases a new auto in 2022 at a cost of $56,000. He uses the car 80 percent for business. Assuming a half-year convention and bonus depreciation, but no immediate expensing, what is the depreciation deduction on the auto? a.$15,360 b.$19,200 c.$44,800 d.$14,400
On April 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $199,000. Holly also owns another residential apartment building that she purchased on April 15, 2020, with a cost basis of $516,000. Click here to access the depreciation tables. If required, round intermediate calculations and final answers to nearest dollar. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS. $ b. Calculate Holly's total depreciation deduction for the apartments for 2021 using MACRS. $