What will be the taxes due on sale

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Reference no: EM132053002

Assume a property is purchased for $1,000,000 and sold at the end of five years for a price of $1,270,000. What will be the taxes due on sale? Assume the initial allocation to land is 25% and the depreciation period os 27.5 years. Further asssume 6% selling costs, 33% percent ordinary income tax rate, a 15 percent capital gains tax rate, and a 25 percent recapture rate. Assume January 1st dates for sale and purchase.

Reference no: EM132053002

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