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Al paid 2,200,000 for a ski chalet in New Hampshire. Because it is located in a state park, he does not own the land (which
Al paid 2,200,000 for a ski chalet in New Hampshire. Because it is located in a state park, he does not own the land (which is subject to ground rent of 48,000 per year. A fair estimate of the residual value of this structure is 200,000. Al bought this place on February 2, 2021 for the sole purpose of leasing it . Within days of acquisition, the property was rented to a single tenant until the end of 2023. What is Al's maximum 2021 cost recovery deduction?
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