Determine how does this affect your taxes

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Reference no: EM131961202

Joe Ji purchased an office building for $250,000 in 2010 that he rents out. Since the property is used for commercial rental purposes, You can depreciate the building on a straight-line basis over a 39 year period.

Joe sold the building this year in 2015 for $600,000. You deducted the depreciation of the property for those 5 years, which added up to $32,050.

You are in the 25% marginal tax bracket. How does this affect your taxes?

Reference no: EM131961202

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