Taxpayer (T), an unmarried individual, purchased property (P) for $800,000 in Year 1. T lived in P
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- Taxpayer ("T"), an unmarried individual, purchased property ("P") for $800,000 in Year 1. T lived in P as a principal residence for 3 years (Years 1 through 3). In years 4, 5 and 6, T rented P for $60,000 per year.T took $40,000 of depreciation deduction in each of years 4, 5 and 6. If T sold P at the end of year 6 for $1,050,000, What is T's income recognized (assuming T makes any election to pay the least amount of tax) $160,000.
The answer is 160k, can you walk through and explain how we get to that step by step?
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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