What is the adjusted basis of the rental house

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Kareem bought a rental house in March 2010 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2012, he had a tennis court built in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the court. In January 2015, he sells the house and tennis court for $330,000 cash.

a. What is the adjusted basis of the rental house and land at the time of the sale? What is the adjusted basis of the tennis court at the time of the sale?

Reference no: EM13866212

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