Carl purchased a building costing $120,000 in 2010 for use in his landscape business. In 2014,...
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Carl purchased a building costing $120,000 in 2010 for use in his landscape business. In 2014, he built an addition to the building at a cost of $30,000. In 2016, a tornado damaged the building. The cost of repairing the building was $22,000, and Carl's insurance company paid $16,000 of the cost of the repairs. Depreciation deducted on the building for 2010 through 2020 totaled $18,000. What is Carl's adjusted basis in the building at the end of 2020? Explain. Carl purchased a building costing $120,000 in 2010 for use in his landscape business. In 2014, he built an addition to the building at a cost of $30,000. In 2016, a tornado damaged the building. The cost of repairing the building was $22,000, and Carl's insurance company paid $16,000 of the cost of the repairs. Depreciation deducted on the building for 2010 through 2020 totaled $18,000. What is Carl's adjusted basis in the building at the end of 2020? Explain.
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Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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