Carlos bought a building for $113,000 in 2011. He added an addition to the building for $26,000. In 2015, he sold it for $212,000. What was his long-term capital gain?

Question

Quizplus · Accepted Answer

Carlos's long-term capital gain is calculated by subtracting the total cost (purchase price plus the cost of the addition) from the selling price. The total cost is $113,000 + $26,000 = $139,000. The selling price is $212,000. Therefore, the long-term capital gain is $212,000 - $139,000 = $73,000.

Carlos Bought a Building for $113,000 in 2011