How much should dennis report as taxable rental income

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Q1. Dennis receives $10,000 during the current tax year from Blanca for some office space in Anaheim, California. The rent covers ?ve months, from September 1 of the current year to January 31 of the following year. How much should Dennis report as taxable rental income in the current tax year?

2. Tom acquired a warehouse for business purposes on August 30, 2000. The building cost $420,000. He took $207,000 of depreciation on the building, $18,000 home office expenses, repairs$7,000 and then sold it for $520,000 on July 1, 2021. What are the amount and nature of Tom's gain or loss on the sale of the warehouse?

a. What is the adjusted basis for the warehouse?

b. What amount of the gain or loss is realized on the sale of the warehouse?

Reference no: EM133179862

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