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Peter, a single taxpayer, bought a house to use as a rental property on April 1, 2007, for $300,000.

Peter, a single taxpayer, bought a house to use as a rental property on April 1, 2007, for $300,000. He moved into the house on June 1, 2013, and used it as his personal residence until August 1, 2014, when he sold it for $500,000. Depreciation taken while the property was used as a rental property was $25,000. What was Peter’s

a) realized gain on the sale of the property?

b) recognized gain on the sale of the property?

c) recognized gain on the sale of the property if it is not sold until August 1, 2015, for $500,000?

Top Answer

Ans A. Purchase price of property = $300,000 Depreciation = $25,000 Net adjusted value of the property = $300,000- $25,000 =... View the full answer

1 comment
  • very helpful answer. Thank you.
    • eliudortiz
    • Jul 20, 2016 at 2:14pm

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