Real Estate Math

A Wisconsin property purchased for $200,000 was depreciated at $7,273/year for 27.5 years (straight-line residential). After 10 years, what is the adjusted tax basis?

A$127,270✓ Correct
B$120,000
C$108,180
D$127,000

Explanation

Accumulated depreciation = $7,273 × 10 = $72,730. Adjusted basis = $200,000 - $72,730 = $127,270. Using the values given ($200,000, $7,273), apply the appropriate formula.. The correct answer is $127,270.. This is a common calculation on the Wisconsin real estate exam.

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