Several years ago,Tom purchased a structure for $300,000 that was originally placed in service in 1929.Three and one-half years ago he incurred qualifying rehabilitation expenditures of $600,000.In the current year,Tom sold the property in a taxable transaction.Calculate the amount of the recapture of the tax credit for rehabilitation expenditures.

Question

Quizplus · Accepted Answer

$24,000 = (40% × $600,000 × 10%).The structure was held for more than 3 years but less than 4 years.

Several Years Ago,Tom Purchased a Structure for $300,000 That Was