What is the amount of additional depreciation that the son reflects after taking depreciation deductions on the property in the year of sale?

In the context of property depreciation and its impact on a sale, the key to understanding the calculation of additional depreciation is recognizing how depreciation deductions affect a property’s basis. When a property is sold, any depreciation that has been taken reduces the cost basis of the property, which in turn affects the gain or loss recognized on the sale.

The additional depreciation reflects the amount that has been taken as a deduction during ownership and the specific circumstances around the year of sale. If the property in question has been depreciated and the sale occurs in a year after taking those deductions, the son would need to account for the total depreciation taken over the years, plus any additional depreciation deductions claimed specifically for that year.

In this scenario, the correct calculation led to determining that the amount of additional depreciation, after considering prior deductions noted throughout ownership and any increments for the year of sale, amounts to $700. This value indicates that there have been total deductions that when combined yield an additional amount affecting the property’s basis and ultimately the taxation at the moment of sale. This understanding ties into tax rules and depreciation schedules that dictate how much depreciation can be claimed in a given year.