If Juan and Rosa buy a home for $240,000 and assume an existing assessment lien of $2,000, what is their total cost basis for the property?

To determine the total cost basis for the property that Juan and Rosa are purchasing, you need to consider both the purchase price of the home and any additional costs that the buyers are taking on as part of the transaction.

In this case, the purchase price of the home is $240,000. Additionally, they are assuming an existing assessment lien of $2,000. This lien represents a financial obligation that the buyers will inherit as part of their purchase.

To calculate the total cost basis, you simply add the purchase price to the amount of the lien:

$240,000 (purchase price) + $2,000 (assumed lien) = $242,000 (total cost basis).

This total of $242,000 reflects the complete financial commitment Juan and Rosa are making with this transaction, encompassing both the home price and the additional lien they are responsible for.