Question

Logan purchased a rental home and lot for $150,000. Her expenses totaled $5,000. Lots in the area sell for approximately $10,000. What is Logan's basis for depreciation in the house

Answer 1

Answer:

The correct response is "145,000 ".

Explanation:

The given values are:

Purchased cost,

= $150,000

Expenses,

= $5,000

Selling cost,

= $10,000

Now,

Logan's basis for depreciation will be:

= $Purchased \ cost+Expenses-Selling \ cost$

On putting the values, we get

= $150000+5000-10000$

= $155000-10000$

= $145,000$ ($)