Question
Jarred sells for $300,000 rental property he purchased in 2006 for $160,000. In 2008 he replaced the entire roof (not a repair) for $12,000 and
Jarred sells for $300,000 rental property he purchased in 2006 for $160,000. In 2008 he replaced the entire roof (not a repair) for $12,000 and also paid $2,000 for repairs to the inside of the rental. Thus far, Jared deducted $18,440 for depreciation. What is Jarred’s realized and recognized gain or loss on this sale?
1. $58,440 Gain
2. $9,560 Gain
3. $70,440 Gain
4. $46,440 Gain
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Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
