Not sure if these answers are correct! Please help. Jake owns a duplex used...
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Jake owns a duplex used as residential rental property. The duplex cost $85,000 in 1986, and 5% of the cost was allocated to the land. Total cost-recovery deductions allowed amount to $80,750. The statutory percentages were used to compute cost-recovery deductions. If the straight-line method of cost recovery were used instead, $80,750 of cost-recovery deductions would have been allowed. Read the requirements. Requirement a. What is the amount of recognized gain and the character of the gain if Jake sells the duplex for $169,000 with 5% of the price allocated to land? (Use only one line for each "character of gain". If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.) IS 1 Amount of Gain Character of Gain Sec. 1245 Building Building Land Sec. 1245 Sec. 1231 Requirement b. Same as (a) except the building is an office building. (Use only one line for each "character of gain". If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.) Amount of Gain Character of Gain Building Building Land Sec. 1231
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Not sure if these answers are correct! Please help.