Question
Investor Smith bought a four-plex apartment property for $500,000. The property's assessed value was $485,000, of which $388,000 is for improvements and $97,000 is for
Investor Smith bought a four-plex apartment property for $500,000. The property's assessed value was $485,000, of which $388,000 is for improvements and $97,000 is for land. The property was purchased on the first day of the tax year. The IRS Cost Recovery Percentage is .03485. What is the cost recovery for the year of acquisition?
| 1. | 80% | |
| 2. | 20% | |
| 3. | $100,000 | |
| 4. | $13,940 |
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
