Ansel purchased raw land three years ago for $200,000 to hold as an investment. After watching the value of the land drop to $150,000, he decided to contribute it to Mountainside Developers LLC in exchange for a 5 percent capital and profits interest. Mountainside plans to develop the property

Q: Karen sells vacant land that was held for investment in her business for $277,000. The land had an…

A: Realized gain refers to the profit made from the sale of an asset once the transaction has been…

Q: Lenny, a real estate professional, has found a retail outparcel for sale for $5,000,000 for a client…

A: The ratio of future value to present value less 1 gives us the return for the period the asset is…

Q: Gain or Loss?

A: Explanation of Gain on asset sale:When selling an asset, the gain or loss is determined by comparing…

Q: Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the…

A: There are two questions asked by you but as per our protocol we are authorized to answer to solve…

Q: Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase…

A: Capital gain refers to an amount that an individual or corporation earns after selling an asset…

Q: John presently owns an office building, which is 30 years old, and is considering renovating it.…

A: Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…

Q: Accounting solve this question

A: Step 1: Define DuPont analysisThe DuPont analysis is the extended method of analyzing the return on…

Q: Pink Petunias, a wholesale nursery, is considering purchasing a new plot of land for their business…

A: Payback period is the length of time in which an investment reaches its break-even point. In other…

Q: A few years ago, Pat purchased Elysian Fields Farm for $1,100,000. The property included 120 acres…

A: Gain can be referred to the amount received from the sale or realization of an investment after…

Q: Ronnie's custom cars purchased fixed assets 2 years ago for $42,000. Ronnie has been offered $30,000…

A: The value at which a company disposed of its used assets is term as the salvage value.

Q: Biden sold an investment property that has a market value of $750,000 to his daughter for the amount…

A: The capital proceeds represent the proceed of CGT asset that is greater or lower than the market…

Q: There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this…

A: It is the change in material amount of the assets or securities recorded at their initial cost. The…

Q: How would you report these two assets on tax return?

A: Asset are the inflow of economic benefit which helps to generate revenue for the business. It is…

Q: Heather owns a two-story building. The building is used 40% for business use and 605 for personal…

A:

Q: Chris purchased a new John Deere tractor for his farming business on 15 May 2018. He paid $45 000…

A: Depreciation is the value of asset, which has been used and we can find annual depreciation on fixed…

Q: Johnson tells Davis that he paid $150,000 for his farm in 2013 and that he believes it is worth…

A: Whether D, the buyer of J's property, can successfully recover his $225,000 that he paid to J for…

Q: You are trying to evaluate the feasibility of purchasing a quarter-acre plot (approximately 11,000…

A: Here,After-Tax Receipts of Rent is US$2,500After Tax Proceeds of Sale of land after 10 years is…

Q: Miss Zena Quinn purchased a property in 2011 for $3,000,000. She is now including her two children…

A: When you sell a financial item (such as stocks, real estate, or other assets) for more money than…

Q: Mr. Russ T. Steele sells his old vehicle for $5000 (you get more if you private sale!) and pays cash…

A: The Equivalent Annual Cost: The Equivalent annual cost gives an estimate of the equivalent equal…

Q: Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500.use…

A: Capital Gain means the increase in the value of the capital asset and it will be realized when the…

Q: Richard Rambo presently owns the Marine Tower office building, which is 20 years old, and is…

A: Let's analyze the situation step by step:Current Situation:Property purchase price: $830,400Loan…

Q: $220,000 on December 31, 2023. What result to Frank?

A: Profit on sale of fixed assets : Profit on sale of fixed assets is an non operating income for the…

Q: Tamily purchas a second home to use for short term rentals near the beach. If it purchases the…

A: in this problem we have to find out present value FACTOR and from that we will get effective…

Q: I hire Susan to sell my house. I tell her that I'm hoping to get $200,000 for the house. She tells…

A: Given that, Susan is hired to sell the house. Amount given to susan for repair = $2000 Proceeds from…

Q: Brian acquired a rental house in 2003 for a cost of $80,000. Straight-line depreciation on the…

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: Claire purchased 200 common shares of Clairco Ltd. in 2015 for $100. It is now 2017 and Claire would…

A: The restructuring allows the shareholder to retire his holding.

Q: George is the owner of numerous classic automobiles. His intention is to hold the automobiles until…

A: a. Yes, the automobile was a capital asset. In general, a capital asset includes property held by a…

Q: FRANK PURCHASED EQUIPMENT FOR $50,000 ON MARCH 1, 2014. AS OF TODAY, FRANK HAS TAKEN $20,000 OF…

A: we need to follow these steps:Calculate the Adjusted Basis:Original purchase price: $50,000Less…

Q: Denny Kean owns a very profitable ice cream stand. Based on the results of a $6,600 marketing…

A: First to determine the inflows and outflows related to the budget. Because it is a long term budget…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.