A calendar year taxpayer purchased land and a residential building for $20,000,000 on November 22, 2015.It was determined that 25% of the purchase price would be allocated to the land. What is the residential buildings adjusted tax basis on December 31, 2018 (rounded to the nearest $500)?

A.$4,432,000.

B.$13,167,000.

C.$13,295,500.

D.$13,363,500.

E.$18,363,500.

john is employed as a bus driver.For calendar year 2019, he had AGI of $110,000 and paid the following medical expenses:

Doctor and Dentist bills - $5,000

Prescription medicine - $2,000

Knee replacement surgery - $12,500

Contact Lenses - $500

Over the counter (non-prescription medicine) $75

As the request of his doctor, he put a pool in the backyard at a cost of $8,500.The value of the home improved by $6,000 as a result of the addition.What is the amount of deductions on Schedule that john can claim after applying all limitations?

A.$10,000.

B.$28,575.

C.$22,575.

D.$11,575.

E.$11,500.

jpl, LP sold a commercial building for $1,500,000 (gross sales proceeds) that was originally purchased many years ago for $850,000.The net adjusted tax basis of building sold was $595,000; (after taking MACRS depreciation expense over the years in the amount of $255,000).Selling costs of this sales transaction were 2% of the gross sales proceeds. What is the amount of taxable gain recognized on this transaction and what is the character of this income?

A. Ordinary income in the amount of $875,000.

B. Capital gain in the amount of $875,000.

C. Capital gain and recaptured section 1250 gain in the amounts of $395,000 and $255,000, respectively.

D. Capital gain in the amount of $650,000.

E. Capital gain and recaptured section 1250 gain in the amounts of $620,000 and $255,000, respectively.

How many days (including weekends and holidays) does a taxpayer have to sell, identify and then purchase like-kind property in order to satisfy the safe harbor provisions of a deferred exchange set forth in Section 1031 of the Internal Revenue Code?

A. 180 days.

B. 135 days.

C. 45 days.

D. 365 days or one year.

E. 730 days or two years.