An office building in Trenton, NJ was purchased for $6,500,000. The closing costs incurred in acquiring the building was $150,000. This investment will be used for rental purposes. The land basis is 15%. Of the remaining depreciable basis, personal property is 8%. The property is placed in service on January 1, 2018, and sold on December 31, 2019. The cost recovery periods are 39.0 years for real property (mid-month convention) and 7 years for personal property (MACRS table 14.29% and 24.49%).

What is the basis of the land, building, and personal property at the time of acquisition?

What is the adjusted basis of the land, building, and personal property at the time of sale?

Calculate the tax liability assuming the building is sold for $7,125,000. (Ignore the 3.8% NIIT)