Alicia owns two investment properties that she acquired several years ago. Her adjusted basis in the assets is as follows.
|
Regular Income Tax |
AMT |
|
|
Land |
$100,000 |
$100,000 |
|
Apartment building |
450,000 |
490,000 |
Alicia sells the land for $250,000 and the building for $800,000.
a. Calculate Alicia’s recognized gain or loss on the sale of each asset for regular income tax and AMT purposes.
b. Determine the AMT adjustment on the sale of each asset.