Erin purchases 2 acres of land in 2016 by paying $4,000 in cash at closing and borrowing
Question:
a. In 2017, Erin pays $250 in property tax on the land. In addition, the county paves the road that runs by the land and assesses each taxpayer $1,300 for the paving. What is Erin's adjusted basis in the land at the end of 2017?
b. In 2017, Erin sells 1 acre of the land to her brother for $18,000. What is her gain or loss on the sale of the land? What is her basis in the remaining acre of land?
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a Erins initial basis in the land is equal to the purchase price of the land In this case the 44000 ...View the full answer
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Related Book For
Concepts In Federal Taxation 2017
ISBN: 9781305965119
24th Edition
Authors: Kevin E. Murphy, Mark Higgins
Question Posted:
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