Question
Question 20 through 21 John, a single taxpayer, sold his 2-family home, which he owned since June 10, 2007 for $850,000. During the time John
Question 20 through 21 John, a single taxpayer, sold his 2-family home, which he owned since June 10, 2007 for $850,000. During the time John owned the home, he lived in one apartment and rented the second apartment. Both apartments were of equal size. John purchased the home for $200,000. John made no improvements to the home, but he took depreciation expense every year on the rental unit. Total depreciation allowed was $61,820; however, total allowable depreciation was $77, 275.
What is Johns Amount realized?
a. $347,725
b. $757,275
c. $425,000
d. $788,180
e. None of the above
What is Johns recognized gain?
a. | $363,280 | |
b. | $175,000 | |
c. | $347,725 | |
d. | $477,275 | |
e. | None of the above |
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