A taxpayer purchased an asset for $50,000 several years ago.He is now planning to sell it.Under the recovery of basis doctrine the taxpayer will not recognize any gain or pay any related taxes unless he sells the asset for more than $50,000.

Question

Quizplus · Accepted Answer

The recovery of basis doctrine states that a taxpayer does not recognize gain until the amount received exceeds the original cost or basis of the asset.

A Taxpayer Purchased an Asset for $50,000 Several Years Ago