ColeenD3
Expert Alumni

Investors & landlords

If the original property cost $123,000 and the addition cost $18,000, the total basis is $141k. The addition is 18.8% of the total and the original property is 87.2% of the total.

 

$125k x 18.8% gives theaddition sales price

$125k x 87.2% of the original asset sale price