Soft, Inc., a § 501(c)(3) organization, has been leasing a building to Polar, Inc., a taxable entity, for 15 years. The lease terminates in the current tax year. Soft's adjusted basis for the building is $400,000. It sells the building to the Development Partnership, a taxable entity, for $600,000. Selling expenses are $25,000.

Question

Soft, Inc., a § 501(c)(3) organization, has been leasing a building to Polar, Inc., a taxable entity, for 15 years. The lease terminates in the current tax year. Soft's adjusted basis for the building is $400,000. It sells the building to the Development Partnership, a taxable entity, for $600,000. Selling expenses are $25,000.
Soft, Inc., a § 501(c)(3) organization, has been leasing a building to Polar, Inc., a taxable entity, for 15 years. The lease terminates in the current tax year. Soft's adjusted basis for the building is $400,000. It sells the building to the Development Partnership, a taxable entity, for $600,000. Selling expenses are $25,000.

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The Answer of Soft, Inc., a § 501(c)(3) organization, has been leasing a building to Polar, Inc., a taxable entity, for 15 years. The lease terminates in the current tax year. Soft's adjusted basis for the building is $400,000. It sells the building to the Development Partnership, a taxable entity, for $600,000. Selling expenses are $25,000.

Soft, Inc, a § 501(c)(3) Organization, Has Been Leasing a Building