Jim paid $250,000 for an apartment building with a fair market value of $260,000. At the time of the sale, the building was appr

Question

2 years ago

13

aised at $225,000. For income tax purposes, what would be the basis of the apartment building

1 answer:

Nimfa-mama [501] · Answer 1 · 2023-05-16T10:28:49+03:00

The amount of $225,000 will be the would be the basis of the apartment building for income tax purposes.

Basically, the cost basis is the purchase cost which is $225,000.

The fair market value and appraised cost does not have anything to do with tax basis for income tax purposes.

In conclusion, the amount of $225,000 will be the would be the basis of the apartment building for income tax purposes