Tina Purchases a Personal Residence for $278,000, but Subsequently Converts

question 238

Multiple Choice

Tina purchases a personal residence for $278,000, but subsequently converts the property to rental property when its FMV is $275,000. Assume depreciation of $65,000 has been deducted after conversion to rental use. If Tina sells the property for $200,000, her realized gain or loss will be

• A) ($78,000) loss.
• B) ($75,000) loss.
• C) ($13,000) loss.
• D) ($10,000) loss.

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