Janine paid $550,000 for a beach-front condo in Charleston, SC. She does not own the land which
Fantastic news! We've Found the answer you've been seeking!
Question:
Janine paid $550,000 for a beach-front condo in Charleston, SC. She does not own the land which is subject to a ground rent of $48, 000 per year. A reasonable estimate of the residual value of this structure is $50,000. Janine bought this place on August 8, 2021, for the sole purpose of leasing it to others on an annual basis. Within days of the acquisition, the house was rented until the end of summer 2022.
a- What is Janine’s maximum 2021 cost recovery deduction?
b- Would you answer to part A. above change if the building was a boat storage warehouse (instead of a rental condo)? Give a reason for your response.
Posted Date: