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An individual purchases a piece of property with a fair market value of $50,000 for $54,000. The individual takes out a loan for $44,000 and
An individual purchases a piece of property with a fair market value of $50,000 for $54,000. The individual takes out a loan for $44,000 and pays the other $10,000 in cash. In addition, the individual pays $1,000 in transactions costs to purchase the property and expects to earn $5,000 per year from renting the property out to others. What is the basis for the property?
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