Kareem bought a rental house in March 2015 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2017, he had a tennis court built in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the court. In January 2020, he sells the house and tennis court for $330,000 cash. a. What is the adjusted basis of the rental house and land at the time of the sale? $fill in the blank What is the adjusted basis of the tennis court at the time of the sale? $fill in the blank What is Kareem's realized gain or loss? Kareem's realized on the sale is $fill in the blank. b. If an original mortgage of $80,000 is still outstanding and the buyer assumes the mortgage in addition to the cash payment, what is Kareem's realized gain or loss? Kareem's realized is $fill in the blank . c. If the buyer takes the property subject to the $80,000 mortgage rather than assuming it, what is Kareem's realized gain or loss? Kareem's realized is $fill in the blank
Problem 13-44 (LO. 1)
Kareem bought a rental house in March 2015 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2017, he had a tennis court built in the backyard at a cost of $7,500. Kareem has deducted $30,900 for
a. What is the adjusted basis of the rental house and land at the time of the sale?
$fill in the blank
What is the adjusted basis of the tennis court at the time of the sale?
$fill in the blank
What is Kareem's realized gain or loss?
Kareem's realized on the sale is $fill in the blank.
b. If an original mortgage of $80,000 is still outstanding and the buyer assumes the mortgage in addition to the cash payment, what is Kareem's realized gain or loss?
Kareem's realized is $fill in the blank .
c. If the buyer takes the property subject to the $80,000 mortgage rather than assuming it, what is Kareem's realized gain or loss?
Kareem's realized is $fill in the blank
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