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A Duplex Was Purchased for $120,000, and Depreciation of $3,300

Question 1

Essay

A duplex was purchased for $120,000, and depreciation of $3,300 has been taken for the last seven years. The net proceeds from the sale of the property were $135,000.
A) Assuming the property qualifies for capital gains treatment at a 15% rate, what is the tax owed?
B) What are the net funds from the sale?

Correct Answer:

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