Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. maria owns a rental property that she has been dep

Maria owns a rental property that she has been depreciating using Form 4562. She is...

50.1K

Verified Solution

Question

Accounting

Maria owns a rental property that she has been depreciating using Form 4562. She is considering selling the property and converting it to her primary residence. How might the depreciation deductions she claimed on the rental property affect her tax situation when she sells it?
There is no impact on Maria's taxes since she is converting the property to a primary residence
A portion of the depreciation claimed may be subject to recapture as ordinary income, reducing the benefit of the Section 121 exclusion
Depreciation does not affect the original basis of the property and her profit is what she sells is for minus the amount she paid for it
The depreciation deductions will lower her capital gains tax liability when she sells

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Based on Chabris’ findings, would you say that genetics or environment is more important in the...

Psychology
Q

The question is very clear. An independent agency is governed by a board of commissioners, one of...

General Management
Q

Question Number 46 Question Id 9046847150 Question Type MCQ Option Shuffling Yes Is Question Mandatory...

Physics
Q

Rob s Lumber Shack sells projects The table below Board Density lb birch 0 034

Geometry
Q

for a procedure consists of all possible simple events or all outcomes that cannot be...

Statistics
Q

Find the volume of the solid generated in the following situation The region R bounded...

Calculus
Q

Find all the missing elements Round to the nearest tenth C B a A C...

Algebra
Q

The amount of money invested in a certain account increases according to the following function...

Algebra
Q

2 A garden s length 1 is five feet longer than the width w If...

Algebra
Q

McAfee sells a subscription to its anti-virus software along with a subscription renewal option that...

Accounting
Q

Complete this question by entering your answers in the tabs below. For the current year,...

Accounting
Q

Han Products manufactures 30,000 units of part S-6 each year for use on its production...

Accounting