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Mylo, Inc., an exempt organization, owns a building. Mylo's adjusted basis for the building is $759,500.

Mylo, Inc., an exempt organization, owns a building. Mylo's adjusted basis for the building is $759,500. Of the building's total area of 8,000 square feet, the front portion (approximately 2,000 square feet) is used in carrying out Mylo's exempt purpose. The remainder of the building is leased to a taxable entity, for $341,775 each year. The unamortized balance of a mortgage relating to the original acquisition of the building by Mylo is $455,700.

The portion of the building's adjusted basis that is treated as debt-financed property is $ and the amount of the mortgage that is acquisition indebtedness is $ .

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The net rental income of $119,000 ($110,000 + $9,000) from both the building ($180,000– $70,000) and the... View the full answer

1 comment
  • This is not correct
    • elizabethpetzke
    • Jul 19, 2016 at 8:52pm

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