Cynthia bought a home (for personal use) from Louise in Year 1 for $500,000. At the time of purchase she incurred the following expenses: $10,000 title insurance, $20,000 brokerage and legal fees. Louise incurred the following expense: $25,000 brokerage and legal expenses. In Year 3, Cynthia added a deck at a cost of $80,000. In Year 4, she repaired the floor at a cost of $20,000.

What is Cynthia’s adjusted basis in the house in Year 4?

Answer rating: 100% (QA)

To calculate Cynthias adjusted basis in the house in Year 4 we need ... View the full answer