Question
Milly is an investor who purchased an income property in 2015 for $700,000. In 2020, Milly sold the income property for $850,000. Note that sales
Milly is an investor who purchased an income property in 2015 for $700,000. In 2020, Milly sold the income property for $850,000. Note that sales costs and purchase fees were negligible, and Milly made no significant improvements to this income property. Total depreciation on the income property from 2015 to 2020 was $120,000.
(a) What was the capital gain realized from the sale of the income property in 2020?
(b) How much of the capital gain calculated in part (a) is subject to capital gains tax?
Milly is an investor who purchased an income property in 2015 for $700,000. In 2020, Milly sold the income property for $850,000. Note that sales costs and purchase fees were negligible, and Milly made no significant improvements to this income property. Total depreciation on the income property from 2015 to 2020 was $120,000.
(a) What was the capital gain realized from the sale of the income property in 2020?
(b) How much of the capital gain calculated in part (a) is subject to capital gains tax?
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Behavioral Finance And Investor Types
Authors: Michael M. Pompian
1st Edition
1118011503, 978-1118011508
