Constanza, who is single, sells her current personal residence (adjusted basis of $165,000) for $450,000. She has owned and lived in the house for 30 years. Her selling expenses are $22,500. What is Constanza's realized and recognized again?
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Constanza, who is single, sells her current personal residence (adjusted basis of $165,000) for $450,000. She has owned and lived in the house for 30 years. Her selling expenses are $22,500. What is Constanza's realized and recognized again?
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- Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $305,000. He sold the home on January 1, 2020, for $326,400. How much gain must Troy recognize on his home sale in each of the following alternative situations? d. Troy rented out the home from January 1, 2007, through December 31, 2015. He lived in the home as his principal residence from January 1, 2016, through December 31, 2016. He rented out the home from January 1, 2017, through December 31, 2017, and lived in the home as his principal residence from January 1, 2018, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2023, for $191,600. He lived in the house for 7 years. The expenses of the sale are $13,412, and he has made capital improvements of $5,748. Larry's cost basis in his residence is $111,128. On November 30, 2023, Larry purchases and occupies a new residence at a cost of $239,500. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence.Brian owns a duplex used as rental property. The duplex has a basis of $84,000 and $380,000 FMV. He transfers the duplex to Carrie,his sister, in exchange for a triplex that she owns. The triplex has a basis of $280,000 and a $380,000 FMV. Two months after the exchange, Carrie sells the duplex to a business associate for $395,000. Requirements Determine: a. Brian's realized and recognized gain on the exchange. b. Carrie's realized and recognized gain on the exchange. Requirement a. Determine Brian's realized and recognized gain on the exchange. Begin with the realized gain. First identify the formula, then enter the applicable amounts and calculate the realized gain. Amount realized (Brian) - Adjusted basis (duplex) = Realized gain $380,000 - $84,000 = $296,000 Determine Brian's recognized gain on the exchange. The recognized gain is $ .
- In the current year, Sandra rented her vacation home for 75 days, used it for personal use for 22 days, and left it vacant for the remainder of the year. Her income and expenses before allocation are as follows: Rental income 11,400 Real estate taxes 1,200 Utilities 1,350 Mortgage interest 3,200 Depreciation 6,000 Repairs and maintenance 810 equired: What is Sandra’s net income or loss from the rental of her vacation home? Use the Tax Court method. Note: Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value.Ethan (single) purchased his home on July 1, 2008. He lived in the home as his principal residence until July 1, 2015, when he moved out of the home and rented it out until July 1, 2017, when he moved back into the home. On July 1, 2018 he sold the home and realized a $237,000 gain. What amount of the gain is Ethan allowed to exclude from his 2018 gross income? Multiple Choice ____ $0 ____ $189,600. ____ $227,000. ____ $237,000.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…
- Each of the following individuals purchased their property five years ago with the intention of using it as a vacation home. They have all rented out their property during periods when they could not get away. Which taxpayer has taxable income from renting their property in the current year? (a) Deborah. She used her beach cottage personally for 40 days and rented it to a friend for 13 days at fair rental value. (b) Lillian. She used her forest cabin personally for 10 days. She rented the property at fair rental value for 12 days using an online platform. She received a Form 1099-K, Payment Card and Third Party Network Transactions, reporting a gross payment amount of more than $600. (c) Kevin. He used his mountain lodge personally for 34 days and allowed his brother to stay there rent-free for 10 days. (d) Terrell. His lakefront condominium was not used for personal purposes at any time during the year. He rented the property to a co-worker at fair rental value for 18 days.Alice, age 58, is single. She owns her home and provided all the costs of keeping up her homefor the entire year. Her only income for 2022 was $46,000 in W-2 wages. Linda, age 24, and her daughter Nancy, age 4, moved in with Linda's mother, Alice, after sheseparated from her spouse in April of 2020. Linda's only income for 2022 was $25,000 inwages. Linda provided over half of her own support. Nancy did not provide more than half ofher own support. Linda will not file a joint return with her spouse. All individuals in the household are U.S. citizens with valid Social Security numbers. No onehas a disability. They lived in the United States all year. For the purpose of determining dependency, Nancy could be the qualifying child ofOnly Alice b. Only Linda c. Either Alice or Linda d. Neither Alice nor Linda 10. Linda is not eligible to claim Nancy for the earned income credit because her filing status isMarried Filing Separate.a. Trueb. FalseMiller owns a personal residence with a fair market value of $195,000 and an outstanding first mortgage of $157,500. This year, Miller gets a home equity loan of $10,000 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?$
- Elsie, single, had an AGI of $134,712 in 2020. All of her income was from wages. Elsie owns 100% of a rental house and actively participated in the real estate rental activity. The rental house generated a loss of $40,549 in 2020. Elsie has over $100,000 at risk. What amount of the $40,549 loss can Elsie deduct in 2020?Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. In 2022, their AGI is $209,000. Jackson and Ashley each earned half of the income. Note: Leave no answers blank. Enter zero if applicable. c. Assume that Ashley earned all of the couple's income and that she contributed the maximum amount she is allowed to contribute to a Roth IRA. What amount can be contributed to Jackson's Roth IRA?Briana owns a second home that he rents to others. During the year, she used the second home for 50 days for personal use and for 100 days for rental use. She collected $20,000 of rental receipts during the year. Based on the number of rental and personal days, she allocated $7,000 of interest expense and property taxes, $10,000 of other expenses, and $4,000 of depreciation expense to the rental use. What is her net rental income this year?