Carlos bought a building for $113,000 in 2014.He added an addition to the building for $26,000.In 2018, he sold it for $212,000.What was his long-term capital gain (ignore depreciation)?
A)$0
B)$47,000
C)$73,000
D)$99,000
E)$212,000

Question

Quizplus · Accepted Answer

To calculate the long-term capital gain, we first need to find the adjusted basis of the property:
Adjusted basis = Original cost + Cost of improvements = $113,000 + $26,000 = $139,000
Long-term capital gain = Selling price - Adjusted basis = $212,000 - $139,000 = $73,000
Therefore, the answer is (C) $73,000.

Carlos Bought a Building for $113,000 in 2014