Basis of Emelio and Charitas Assets
... of Emelio and Charita's Assets a. Office Building purchased by Emelio: The basis of the office building is price paid for the property $120,000plus the cost of new roof $3,000. Therefore the basis is $123,000.
A basis other than cost (Fair Market Value or Adjusted Basis) may be used under following circumstances:
(i)Property received for Services performed, (ii)Bargain Purchase, (iii)Restricted Property, (iv)Taxable and Non-taxable Exchanges, (v)Involuntary Conversions, (vi)Partial business use of a property, (vii)Property transferred from a spouse, (viii)Gifted/inherited property, (ix)Community property, (x)Property held by surviving tenant, (xi)Property changed to business/rental use
b. Computer e...