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Bea Gold bought her home 10 years ago for $250,000. At a point in time when the value of the home is $200,000, she converts
Bea Gold bought her home 10 years ago for $250,000. At a point in time when the value of the home is $200,000, she converts it to a rental property. She rents it for two years, during which time she claims allowable depreciation of $6,000. She sells it for $194,000. What is her allowable loss (before applying rules such as IRC Section 1231 or limitations on capital losses)?
A.$0
B.$6,000
C.$50,000
D.$56,000S
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