1. During the current year, Depreciator purchase of new improved real property at a cost of $130,000 of which $100,000 is attributable to the building and $30,000 to the land. Depreciator immediately rents the property to others. Compute depreciator's depreciation in the subsequent year in the following situations. (a) The building is an apartment building. (b) The building is an office building. (c) The buildings in (a) and (b), above, are used, not new, property and were purchased from depreciator sister who originally purchased them in 1982. (d) Depreciator elects the alternative depreciation system with respect to the buildings in (a) and (b), above (e) Some years later, $150,000 is spent to make "qualified improvements to the buildings in (a) and (b), above (f) Some years later, the $100,000 is spent to rehabilitate the internal structure framework of the buildings in (a) and (b), above, which are certified historic structures built in 1940.

1. During the current year, Depreciator purchase of new improved real property at a cost of $130,000 of which $100,000 is attributable to the building and $30,000 to the land. Depreciator immediately rents the property to others. Compute depreciator's depreciation in the subsequent year in the following situations. (a) The building is an apartment building. (b) The building is an office building. (c) The buildings in (a) and (b), above, are used, not new, property and were purchased from depreciator sister who originally purchased them in 1982. (d) Depreciator elects the alternative depreciation system with respect to the buildings in (a) and (b), above (e) Some years later, $150,000 is spent to make "qualified improvements to the buildings in (a) and (b), above (f) Some years later, the $100,000 is spent to rehabilitate the internal structure framework of the buildings in (a) and (b), above, which are certified historic structures built in 1940.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter17: Property Transactions: § 1231 And Recapture Provisions

Section: Chapter Questions

Problem 41P

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