Question
A building was purchased 10 years ago for $2,000,000. During that period straight-line depreciation of 2%/year was used to reduce the taxable income from this
A building was purchased 10 years ago for $2,000,000. During that period straight-line depreciation of 2%/year was used to reduce the taxable income from this investment held in an Limited Partnership. The building sold for $2,900,000. Improvements of $180,000 were made to the building just before it was sold. Note: the improvements were not capitalized (no depreciation was taken for the improvements in any prior tax year). What is the capital gain once the property is sold? Give your answer to the nearest dollar. Example for an answer of $894,901 enter the value 894901
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