1.You buy an apartment building for $950,000, the land value is 25%. You sell the property in 7 years for $1,500,000. You pay a 6% commission and the closing costs are $12,000. A.How much depreciation is subject to recapture? B.What is the maximum federal tax rate charged on the Recapture of depreciation? B. What is the capital gain upon the sale of the property?

1.You buy an apartment building for $950,000, the land value is 25%. You sell the property in 7 years for $1,500,000. You pay a 6% commission and the closing costs are $12,000. A.How much depreciation is subject to recapture? B.What is the maximum federal tax rate charged on the Recapture of depreciation? B. What is the capital gain upon the sale of the property?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 15MCQ

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