On January 1, Mr. D owned rental property with an adjusted basis to him of $250,000. Mr. D made the following expenditures during the year:
Ordinary painting of the building
Repair of one section of the roof
(useful life not appreciably extended)
Legal fees paid to defend title
Property taxes
Assessment for local improvement of street that
increased the value of the property appreciably
Not considering depreciation, what is Mr. D's basis in the property at year end?
A. $240,000
B. $275,000
C. $225,000
D. $260,000
Directions: Select the best answer.
$ 5,000
2,500
10,000
6,000
15,000