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· LU.4 Lopez acquired a building on June 1, 2014, for $1 million. Calculate Lopezs cost recovery deduction for 2019 if the b
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Answer #1

Ans: Building acquired on June 1,2014 for $1 million.

Residential rental real estate:  

Cost recovery deduction= Building amount* applicable percentage

= 1,000,000*3.636%

=$36,360

Non residential real estate:

Cost recovery deduction =building amount* applicable percentage

=1,000,000*2.564

=$25,460

for percentage use MACRS straight line depreciation chart

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