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madreJ [45]
3 years ago
7

Patty Leave owned an apartment house for ten years. Depreciation was taken on a straight-line basis. When Patty's adjusted basis

for this property was $200,000, she traded it for an office building having a fair market value of $600,000. The apartment house has 100 dwelling units, while the office building has 40 units rented to business enterprises. The properties are not located in the same city. What is Patty's reportable gain on this exchange
Business
1 answer:
Sav [38]3 years ago
3 0

Answer:

$0

Explanation:

IRS's Section 1031 allows real estate investors to exchange real properties and defer any capital gains tax. In this case, Patty doesn't need to report any gain because she is exchanging her apartment house (with 100 rented apartments) for an office building (with 40 rented offices).

In order for a property to classify as a 1031 exchange, it must involve properties that have similar uses. In this operation, both properties have rental units.

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Lady bird [3.3K]

Answer: -$7,700

Explanation:

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Emma is planning how much she needs to make next week. She can only work 25 hours, and she needs to make a total
Mademuasel [1]

Answer:

$24.8 per hour.

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3 years ago
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lbvjy [14]

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