Mr. Briggs purchased an apartment complex on January 10, 2015, for $2 million with 10% of the
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Mr. Briggs purchased an apartment complex on January 10, 2015, for $2 million with 10% of the price allocated to land. He sells the complex on October 22, 2017, for $2.5 million. Assume that 10% of the $2.5 million selling price is allocated to land and 90% is allocated to the building.
a. How much depreciation was allowed for 2015?
b. How much depreciation is allowed for 2017?
c. Will any of the gain be ordinary income?
d. What is the amount of gain and the character of the gain on the sale of the building?
e. What is the amount of gain and the character of the gain on the sale of the land?
f. Will any of the gain be taxed at 25%?
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Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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