Which of the following would be classified as soft costs?O a) Joan purchased a rental property and incurred legal fees of about $1,000 associated with thepurchase of the property.O b)Alicia incurred legal fees associated with the purchase of her rental property which she wasrenovating to make it more suitable for renting.O c) Robert who bought a rental property under construction incurred additional interest cost fromthe use of his line of credit to pay for the renovations.d) Russell who purchased a rental building and incurred costs for property taxes and mortgageinterest.Minutes remaining : 112Previous Question Next Question View Summary and Submit Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed tothe land. Over the years, he has claimed total CCA of $60,000 on the building. This year, he sold theproperty for $550,000 with $95,000 attributed to the land. Remember to take into account therecapture on the building, the capital gain on the building, and the capital gain on the land. What isthe total increase in Max's taxable income as a result of this transaction?a) $60,000b) $125,000c) $185,000d) $250,000Minutes remaining: 114Previous Question Next QuestionView Summary and Submit

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Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the land. Over the years, he has claimed total CCA of $60,000 on the building. This year, he sold the property for $550,000 with $95,000 attributed to the land. Remember to take into account the recapture on the building, the capital gain on the building, and the capital gain on the land. What is the total increase in Max's taxable income as a result of this transaction?

Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the land. Over the years, he has claimed total CCA of $60,000 on the building. This year, he sold the property for $550,000 with $95,000 attributed to the land. Remember to take into account the recapture on the building, the capital gain on the building, and the capital gain on the land. What is the total increase in Max's taxable income as a result of this transaction?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 66P

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