Question

Oliver bought a rental property in 2018. He paid $100,000 cash and assumed a mortgage of $75,000. At the time of purchase, the land was valued at $10,000. What is Oliver's depreciable basis in the property?a. $90,000 b. $100,000 c. $165,000 d. $175,000

Answer 1

Depreciable value will be equal to $165000

So option (C) will be correct option

Step-by-step explanation:

It is given Oliver bought a rental property . he paid $100000 cash and mortgage of $75000

So total cost to Oliver = $100000+$75000 = $175000

Value of land = $10000

We have to find the depreciable basis in the property

We know that land is non depreciable

So depreciable value will be equal to = $175000 - $10000 = $165000

So option (c) will be correct answer