Doug purchased a new factory building on January 15,1988,for $400,000.On March 1,2011,the building was sold.Determine the cost recovery deduction for the year of the sale assuming he did not use the MACRS straight-line method.

Question

Quizplus · Accepted Answer

The building was purchased before 1987, so it would use the ACRS method. For nonresidential real property, the ACRS recovery period is 31.5 years. The building was sold in 2011, so the cost recovery for the year of sale is calculated using the mid-month convention for the months held in 2011.

Doug Purchased a New Factory Building on January 15,1988,for $400,000