On February 3 of the Current Year, Samantha Converts Her

question 58

Multiple Choice

On February 3 of the current year, Samantha converts her house to a rental property. Samantha's adjusted basis in the house is $150,000 and the fair market value is $120,000 on the date of conversion. Samantha uses the rental for 3 years and properly deducts depreciation totaling $12,000. Then, she sells the house for $130,000. What is the amount of the gain or (loss) recognized on the sale?

• A)No gain or loss
• B)$8,000 gain
• C)$20,000 loss
• D)$22,000 gain
• E)$ 8,000 loss

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