Henry Oldham purchased the office building in which his CPA firm was housed in 1983. Henry purchased the building for $225,000. Henry replaced the windows in the building and restructured the lay-out of the offices in the building. His costs were $32,000 for the improvement. Henry is retiring and has just sold the building for $495,000. Henry has claimed $55,000 in depreciation. Henry will have selling costs of $5,000. Did Henry own the property for an amount of time that would allow capital gains tax rate?

Question

Quizplus · Accepted Answer

Henry owned the property for more than one year (from 1983 to his retirement), which qualifies the sale for long-term capital gains tax treatment.

Henry Oldham Purchased the Office Building in Which His CPA