Carlos bought a building for $113,000 in 2012. he added an addition to the building for $26,000. in 2016, he sold it for $212,000. what was his long-term capital gain (ignore depreciation)?
You got to add building cost with your additional money: 113,000 + 26,000 = 139,000. Then the difference between the selling price and the "final" cost of your building equals your capital gain: 212,000 - 139,000 = 73,000 Capital Gain. So it's C! (---HINT---: Remember that this is calculated theoretically, but practically you need a calculate the appreciation or depreciation of the property!)
