On June 1, 2010, Skylark Enterprises (not a corporation) acquired a retail store building for $500,000 (with
Question:
a. Compute the cost recovery and adjusted basis for the building using Table 8.6 from Chapter 8.
b. What are the amount and nature of Skylark's gain or loss from disposition of the building? What amount, if any, of the gain is unrecaptured § 1250 gain?
Transcribed Image Text:
MACRS Sraight-Line Deprecation for Real Property Assuming Mid-Month Convention TABLE 8.6 For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property Recovery Year(s) The Applicable Percentage ls (Use the Column for the Month in the irst Year the Property Is Placed in Service 10 12 2-18 19-27 28 3.485 3.182 2.879 2.576 2.273 970 .667 1.364 1.061 0.758 0455 0.152 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3637 3.637 363 3.637 3.637 3.637 3.637 3.637 3.637 1970 2.273 2.576 2.879 3.182 3485 3.636 3.6363.636 3.636 3.636 3.636 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1364 1.667 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property Recovery The Applicable Percentage ls (Use the Column for the Month in the irst Year the Property Is Placed in Service 10 12 2-19 20-31 32 3.042 2.778 2.513 2249 984 720 .455 1.190 0.926 0.661 0397 0.132 3.175 3.175 3.1753.1753.1753.1753.1753.175 3.175 3.175 3.175 3.175 174 3.174 3.1743.1743.1743.1743.1743.174 3.174 3.174 3.174 3.174 1.720 1.984 2.249 2.5132.7783.042 3.1753.75 3.175 3.175 3.175 3.175 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.397 0.661 0.926 1.190 1.455 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property Recovery Year(s) The Applicable Percentage ls (Use the Column for the Month in the irst Year the Property Is Placed in Service 10 12 2461 2.247 2.033 819 .605 39 1.177 0.963 0.749 0.535 0321 0.107 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 0.107 0.321 0.535 0.749 0.963 1177 391 605 1819 2.033 2247 2.461 2-39 The offidial tables contain a separate row for each year. For ease of presentation, certain years are grouped in these tables. In some instances this will produce a difference of .001 for the last digit when compared with the official tables.
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