Want to Know Bob's Basis in Warehouse and Land After Buying a Property

What is Bob's basis in the warehouse and in the land after purchasing them for $144,000? Bob's basis in the warehouse would be the amount he paid for it, which is $144,000. Bob's basis in the land would also be the amount he paid for it, which is $144,000.

Bob's Basis Calculation

Warehouse: Bob's basis in the warehouse is equal to the purchase price, which is $144,000.

Land: Similarly, Bob's basis in the land is also the amount he paid for it, which is $144,000.

So, after purchasing the property for $144,000, Bob's basis in both the warehouse and land is $144,000.

What would be Bob's basis in the warehouse and in the land if the appraised value of the warehouse was $86,000, and the appraised value of the land was $144,000? Bob's basis in the warehouse would be $86,000, as it is the lower of the appraised value and the amount he paid. Bob's basis in the land would be $144,000, which is the amount he paid for it.

Revised Basis Calculation with Different Appraised Values

Warehouse: With the appraised value of $86,000 for the warehouse, Bob's basis in the warehouse would be $86,000 - the lower value between the appraised value and the purchased price.

Land: Bob's basis in the land remains $144,000, as it is the amount he paid for it.

Therefore, if the appraised values are different, Bob's basis in the warehouse and land would be $86,000 and $144,000 respectively.

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