What is the gain on the sale of the land

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Reference no: EM131852924

Question: A. Brandy purchased a personal residence in 2006 for $300,000. In 2012, when the preperty's FMV was $275,000, she converted the property to rental property. Assume that 20% of the property's value should be allocated to the land. What is the basis of the house for depreciation?

B. Brandy rents the property for four years, claiming a total of $32,000 of accumulated depreciation. If she sells the property after four years for $310,000, what is the gain on the sale of the land and the gain on the sale of the building? 20% of the property value is still allocable to the land.

Reference no: EM131852924

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