McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

تمرين 3

Gary inherited a Maine summer cabin on 10 acres from his grandmother.His grandparents originally purchased the property for $500 in 1950 and built the cabin at a cost of $10,000 in 1965.His grandfather died in 1980 and when his grandmother recently passed away, the property was appraised at $500,000 for the land and $700,000 for the cabin.Since Gary doesn't currently live in New England, he decided that it would be best to put the property to use as a rental.What is Gary's basis in the land and in the cabin?