Albert Arnett's personal residence cost him $70,000, and it had a fair market value of $64,000 when it was converted to rental use. Albert claimed $4,000 depreciation during the time it was rented. fte rental building was sold for $62,000. What is his gain or loss?

Question

Quizplus · Accepted Answer

No gain or loss. the basis for gain is $66,000 ($70,000 - $4,000); the basis for loss is $60,000 ($64,000 -
$4,000). With a selling price of $62,000, there is no gain or loss because the selling price is between the basis for gain and the basis for loss.

Albert Arnett's Personal Residence Cost Him $70,000, and It Had