On July 16, 2019 Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of this purchase price 400,000 is allocated to the building and 100,000 is allocated to the land. Cost recovery of 4708 is deducted
On July 16, 2019 Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of this purchase price 400,000 is allocated to the building and 100,000 is allocated to the land. Cost recovery of 4708 is deducted
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 45P
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Question
On July 16, 2019 Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of this purchase price 400,000 is allocated to the building and 100,000 is allocated to the land. Cost recovery of 4708 is deducted for the building (nonresidential real estate)
what is the adjusted basis for the land and the building at the acquisition date?
land?
building?
what is the adjusted basis for the land and the building at the end of 2019?
land?
building?
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