Otis bought a 2-unit apartment building in July 2007 for $330,000 and sold it for $400,000 on December 20,2014.At the time of sale there was $83,493 of accumulated straight-line depreciation on the apartment building.Assuming Otis is in the 33% tax bracket,how much of the gain will be taxed at 25%?

Question

Quizplus · Accepted Answer

The gain taxed at 25% is the amount of accumulated depreciation, which is $83,493.

Otis Bought a 2-Unit Apartment Building in July 2007 for $330,000