Essay
In 1985, Roy leased real estate to Drab Corporation for 20 years.Drab Corporation made significant capital improvements to the property.In 2005, Roy decides not to renew the lease and vacates the property.At that time, the value of the improvements is $800,000.Roy sells the real estate in 2012 for $1,200,000 of which $900,000 is attributable to the improvements.How and when is Roy taxed on the improvements made by Drab Corporation?
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Roy is not subject to taxation on the im...View Answer
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Correct Answer:
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