Question: To do: Use the given information to determine the basis in each scenario. Each scenario is worth 5 points. Basis Scenario 1: Personal Residence Basis

To do: Use the given information to determine the basis in each scenario. Each scenario is worth 5 points. Basis
Scenario 1: Personal Residence Basis Adjusted for Business Use Gloria is a realtor and has a home office to run her business. Earlier in the year, she purchased her current home, which will serve as her principal residence, for $500,000. The costs that are directly related to her home office are $5,250. Of that amount, $1,000 was for depreciation. What is the adjusted basis of the home?

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