Compute the chargeable gains arising on Karen's two disposals
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Karen bought a house in 1990 for £42,000. In November 1991 she spent £18,000 on dividing the house int o two self-contained flats. In September 2015 she sold one of the flats for £95,000, at which time the other flat was valued at £105,000. In January 2018 she sold the second flat for £110,000. Karen never lived in either of the flats.
Compute the chargeable gains arising on Karen's two disposals
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- lois bought a house in july 2009 for $200000 and moved in immediately. in july 2012, she rented it out as she was sent overseas ny her employer. at that time, the house was valued at $350000. she sold it in july of the current tax year for $360000. Calculate Bunny’s net capital gain/(loss) for the current tax year, indicating where appropriate which element of the cost base is applicable for each outlay. Support your answer with income tax legislation where necessaryHetty died in June 2020 leaving £20,000 to her son George and the £100,000 remainder of her estate to her husband Harold. Harold had gifted £18,000 to George in May 2018. Harold dies on 6 June 2021 leaving his entire estate to George. The estate comprised the Harold’s home, a small flat valued at £170,000, and other assets worth £680,000, giving a total estate value of £850,000. The IHT NRB for 2020-21 was £325,000. No other lifetime gifts were made. Required: Calculate the IHT liability on Harold’s death, showing your workings, and state the payment date for IHT.Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $310,000. He sold the home on January 1, 2022, for $330,200. How much gain must Troy recognize on his home sale in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Required: Troy rented out the home from January 1, 2007, through November 30, 2008. He lived in the home as his principal residence from December 1, 2008, through the date of sale. Assume accumulated depreciation on the home at the time of sale was $16,800. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2017. He rented out the home from January 1, 2018, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $3,900. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2019. He rented out the home from January 1, 2020, through the date of the sale. Assume…
- Trevor died on 19 June 2020 leaving an estate valued at £720,000. Under the terms of his will, Trevor’s estate was left to his children. The estate included a main residence valued at £300,000. Trevor’s wife died on 5 May 2009. She used all of her nil rate band of £325,000. Find Out Inheritance Tax.Eva Stone's home in Chicago was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $19,000. The average age of the damaged personal property was 8 years, and its useful life was estimated to be 18 years. What is the maximum amount the insurance company would pay Eva, assuming that it reimburses losses on an actual cash-value basis? Round the answer to the nearest cent.Greg Grotto exchanged an eight-unit apartment building for a four-unit apartment building. His adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building he received, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction. How much gain does Greg need to recognize? a. $120,000 b. $80,000 c. $48,000 d. $40,000 e. $0 Please do not give solution and formulae in image format.. thanku
- Victoria has the following property income in 2022/23. i) She let a house to tenants throughout the year at a monthly rate of £800. She incurred the following expenditure during the year Insurance Cleaning Boiler service Replacement of windows with improved widows Letting agent fees 600 200 350 5,250 900 ii) She let out another house for part of the year. It was first let to tenants from 1 June 2022 at a monthly rent of £950. She paid £250 to advertise the property before it was let. During the year she paid £400 insurance in respect of the property. iii) On 6 April 2022 she let out a leasehold office building. The tenant paid £12,000 for the grant of a 12-year lease, in addition to annual rental of £18,000. During the year Victoria paid £900 insurance in respect of the building. iv) Throughout the year she let out a room in the house she lives in for £9.600 per annum. The expenses relating to the room in the year were £1,200. Required: a) Calculate Victoria's property business profits…Timothy and Cleo are married (file a joint return) and purchased rental property in 2005 for $300,000. They sold it for $500,000 in 2020. How much must Timothy and Cleo report as a gain on their 2020 income taxes? Purchased the Home January 1, 2005 Rental Property January 1, 2005 through December 31, 2014 Principal Residence January 1, 2015 through December 31, 2020 Sold the Home December 31, 2020Facts: Cheryl bought a home on April 1, 2023 for $370,000. The home was her principal residence until November 30, 2023 when she sold the home due to a job change that required her to move to another state (210 miles away). The home sold for $465,000. Cheryl is single and this was the first home she's ever owned. She made no significant improvements to the home while living there. Requirements: 1. Research the following issue: What is Cheryl's realized gain on the home sale? How much of the gain, if any, must be recognized on her 2023 tax return?