Business
Business, 25.03.2021 20:50, stelllllllllllllllla

Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2016, he had a tennis court bt1ilt in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the cot1rt. In January 2019, he sells the house and tennis court for $330,000 cash. a. What is Kareem's realized gain or loss?
b. What is the adjusted basis of the rental house and land at the time of the sale?
c. What is the adjusted basis of the tennis court at the time of the sale?
d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?

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Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land a...

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