Carlos bought a building for $110,000 in 2017. He added an addition to the building for $26,000 in 2018. In 2021, he sold it for $209,000. What was his long-term capital gain (ignore depreciation)? a.$76,000 b.$73,000 c.$26,000 d.$0 e.$102,000

Carlos bought a building for $110,000 in 2017. He added an addition to the building for $26,000 in 2018. In 2021, he sold it for $209,000. What was his long-term capital gain (ignore depreciation)? a.$76,000 b.$73,000 c.$26,000 d.$0 e.$102,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 7CE

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Question

Carlos bought a building for $110,000 in 2017. He added an addition to the building for $26,000 in 2018. In 2021, he sold it for $209,000. What was his long-term capital gain (ignore depreciation)?

a.$76,000

b.$73,000

c.$26,000

d.$0

e.$102,000

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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