Question
Rhianna purchased a home for $650,000. She added a swimming pool at a cost of $25,000 and a patio deck for $8,000. What is Rhianna's
Rhianna purchased a home for $650,000. She added a swimming pool at a cost of $25,000 and a patio deck for $8,000. What is Rhianna's adjusted basis for this property?
A. $650,000
B. $658,000
C. $675,000
D.$683,000
Christine wants to sell some property but needs to determine the basis first. Which of the following items increase her original basis?
A. Discounts, rebates, or reimbursements of the purchase price.
B. Insurance reimbursements for property damage.
C. Tax credits are received through ownership of the asset.
D. The cost of capital improvements.
Lindsey inherited a gold necklace from her grandfather. The original cost of the necklace was $3,000 and the fair market value when her grandfather died was $4,000. What is Lindsey's basis for the necklace?
$0
$1,000
$3,000
$4,000
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