Advise Gagandeep on the tax treatment of this payment.
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1. Gagandeep leased his building to Nabin to open a Pub for the amount of $150,000
per year. The lease requires Nabin to repair any damage to the building at the end
of the lease. Nabin fails to repair damage to the roof and tiles of the premises and
instead pays Gagandeep a sum of $50,000 for the damage. Advise Gagandeep on
the tax treatment of this payment.
please put 3 referencesa
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- Blackburn Corporation is a calendar year taxpayer. Every year on September 1, Blackburn enters into a contract with Smith Company for Smith to provide cleanup and winterization services for its grounds and buildings. The amount paid on September 1 when the contract is signed is $7,500 and the contract runs from December of the same year through March of the following year. When may Blackburn deduct the amount paid on September 1, 2020?Salvador and Jenna Porter purchased a home in Kenosha, Wisconsin, for $400,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until November 1 of year 1, when they sold the home for $500,000. The Porters' marginal ordinary tax rate is 35 percent. Note: Leave no answer blank. Enter zero if applicable. Required: a-1. Assume that the Porters sold their home and moved because they didn't like their neighbors. How much gain will the Porters recognize on their home sale? a-2. At what rate, if any, will the gain be taxed? b. Assume the Porters sell the home because Jenna's employer transfers her to an office in Texas. How much gain will the Porters recognize on their home sale? c. Assume the same facts as in part (b), except that the Porters sell their home for $700,000. How much gain will the Porters recognize on the home sale? Note: Do not round intermediate calculations. d. Assume the same facts as part (b), except that on December 1 of…Nicole purchased new equipment for her business on February 1, 2022. The equipment cost $32,925. She did not place any other property in service. What amount may Nicole deduct under Section 179 in in the current tax year and what is the basis of her equipment on January 1 of the following tax year?
- Ilene rents her second home. During the year, Ilene reported a net loss of $10,600 from the rental. If Ilene is an active participant in the rental and her AGI is $133,000, how much of the loss can she deduct against ordinary income in the year?Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The tax was originally purchased for $23,000, and the adjusted basis was $1.700 at the time of the accident. The tax was repaired at a cost of $2.650 and insurance reimbursed Don $718 of this cost. What is the amount of Don's casualty loss deduction? Mutiple Choice O O O $982 $2,650 $1932 $1700 Doo in not eligible for a casualty loss deductionAlicia sold her personal residence to Rick for $300,000. Before the sale, Alicia paid the real estate tax of $4,380 for the calendar year. For income tax purposes, the deduction is apportioned as follows; $2,160 for Alicia and $2,220 for Rick. What is Ricks basis in the residence?
- Jerry, a cash basis taxpayer, rents office space for his business. He pays $12,000 on September 1 of the current year for the next twelve months of rent. Jerry may deduct the full $12,000 in the current year on his tax return. True or FalseNatalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: $ 1,270 Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance 710 6,300 1,150 800 Utilities 840 Depreciation 10,950 During the year, Natalie rented out the condo for 98 days, receiving $31,250 of gross income. She personally used the condo for 40 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.)Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
- Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases an office building to use in her business for $183,000 for an 18-month period. To obtain this favorable lease rate, she pays the $183,000 at the inception of the lease. How much rent expense may Maud deduct on her 2019 tax return? Round any calculations to two decimal places and round the final answer to the nearest dollar I thought since she uses the cash method it will be $183000 however that answer is coming back as incorrect. Please help!Miller owns a personal residence with a fair market value of $317,450 and an outstanding first mortgage of $253,960, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $15,873 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?During the tax year, Monica incurred one personal casualty loss due to a federally declared disaster. The amount of the loss after reimbursements is $8,025. Monica will not be replacing any of the damaged property. Monica's adjusted gross income is $50,000. What is the amount of the casualty loss deduction to report on Schedule A (Form 1040)? $2,925 $3,025 $7,925 $8,025
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