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Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made $50,000 of capital improvements on the complex, and depreciation claimed on the building to date is $128,
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3 votes
Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made $50,000 of capital improvements on the complex, and depreciation claimed on the building to date is $128,700

User Tomas Pastircak
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1 Answer

25 votes
25 votes

Answer:

$671,300

Step-by-step explanation:

Calculation to determine Jocasta's adjusted basis in the building.

Adjusted basis =[$750,000-($128,700 - $50,000)]

Adjusted basis=$750,000- $78,700

Adjusted basis = $671,300

Therefore Jocasta's adjusted basis in the building will be $671,300

User Keyle
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