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Jaussi Purchased a Computer Several Years Ago for $2,200 and Used

question 29

Essay

Jaussi purchased a computer several years ago for $2,200 and used it for personal purposes. On November 10th of the current year, when the fair market value of the computer was $800, Jaussi converted it to business use. What is Jaussi's tax basis for the computer?


Definitions:

Business Premises

The buildings and land where a business operates, including offices, factories, retail stores, and other facilities.

Business Purposes

refers to the intentions or objectives that are undertaken for commercial gain or organizational benefit.

Paralegal Work

Involves performing legal tasks and offering support services under the guidance of an attorney, without being qualified as an attorney themselves.

Legal Research

The process of identifying and retrieving information necessary to support legal decision-making.

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