Dave receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is $190,000. At the time of the gift, theland and building have fair market values (FMVs) of $51,000 and $119,000, respectively. No gift tax is paid by Dave's uncle atthe time of the gift.Read the requirements.Requirement a. To determine gain, what is Dave's basis for the land? (Do not round intermediary calculations. Only round theamount you input in the cell to the nearest dollar.)To determine gain, Dave's (the donee's) basis for the land isRequirement b. To determine gain, what is Dave's basis for the building? (Do not round intermediary calculations. Only roundthe amount you input in the cell to the nearest dollar.)To determine gain, Dave's (the donee's) basis for the building isRequirement c. Will the basis of the land and building be the same as in Parts a and b for purposes of determining a loss?the basis of the land and buildingthe same as in Parts a and b for purposes of determining a loss because

The tax basis represents the original cost of the property plus certain additional costs. When…

Answered: Dave receives a duplex as a gift from…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Theresa Perry exchanged her investment-use real property for a larger piece of investment-use property. At the time of the exchange, the fair market value (FMV) of the property she traded was $55,000, and her adjusted basis in this property was $27,000. She also provided $11,000 cash. In the exchange, she received investment-use property with an FMV of $66,000.What is Theresa's gain realized and the gain recognized on the exchange? $0 and $28,000 $11,000 and $38,000 $28,000 and $0 $38,000 and $11,000
Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The assets have the following characteristics: Adjusted Basis Fair Market Value Sarah's real property $3,600 $9,000 Tyler's real property 1,800 7,200 Equipment 1,620 2,700 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her adjusted basis in the land and building she acquired from Tyler is $ Her recognized is $ and her adjusted basis in the equipment is $ b. What are Tyler's recognized gain or loss and basis for the land and building acquired from Sarah? is $ Tyler's recognized and his adjusted basis in the land and building he acquired from Sarah is
The Abelinda Estate distributed some land, basis of $15,500 and fair market value of $18,000, to beneficiary Bartholomaus. The estate is subject to a 28% marginal income tax rate, and Bartholomaus is subject to a 32% marginal rate. What are the tax savings if the executor of the estate elects that the entity recognize the related realized gain? Please note that I came up with $125 & it is incorrect.
Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios? c. Rafael received $23,500 cash, a parcel of land worth $96,500, and marketable securities of $10,400. Rafael also paid a commission of $9,000 on the transaction. Amount realized
Terry owns land that serves as security for a $50,000 mortgage held by Key Bank. When Terry's tax basis is the land was $15,000 and the land's fair market value was $40,000, Key Bank forecloses on the land and takes title in full satisfaction of the mortgage balance. Which of the following statements is correct? a. If the mortgage is recourse, Terry must recognize gain on the foreclosure but no income from the discharge of indebtedness. b. If the mortgage is nonrecourse, Terry must recognize gain on the foreclosure but no income from the discharge of indebtedness. c. Terry only recognizes income from the discharge of indebtedness if the land was used in a trade or business. d. If the mortgage is nonrecourse, Terry must recognize gain on the foreclosure and income from the discharge of indebtedness. None of the above e.
When appreciated property is transferred, the gift tax is based on replacement cost of the property fair market value of the property on the date of the gift the donor's original cost of the property the donor's original cost increased by half of the appreciation
Elaine exchanges a lot of land that is used exclusively for business purposes for another lot that also is to be used exclusively for business. The adjusted basis for the old lot is $19,750, and its FMV is $15,750. Required: Calculate Elaine’s recognized gain or loss on the exchange. (If no gain or loss is recognized, select "No gain/loss".) Calculate Elaine’s basis for the lot she receives.
Which of the following taxpayers would be most likely to benefit from an installment sale? (a) Allan. He sold a business-use car at a net gain that was less than the amount of depreciation claimed. (b) Kayla. She sold business-use land for a gain. (c) Marie. She sold property she had held in inventory in her business at a net gain. (d) Robert. He sold a fishing boat at a net loss.
Charles exchanged land used in his business plus 26,000 in cash for like-kind real estate. Charles had an adjustment basis in the land of 27,000 and its fair value was 32,000 at the date of exchange. the new property that Charles received had a fair value of 58,000. What is Charles's recognized gain on this exchange and his tax basis of the new property he received?
To whom is the income allocated, why, and how much: When Worf’s parent’s died, the made him the beneficiary of a trust which holds real estate as well as income producing assets. Worf distributes one of the rental properties to Alexander outright. Alexander collects the rent from the tenants and manages the properties. In 2011, his revenue less his costs was 50K, and in 2010 his revenue less his costs was 32K.
1.
MN.29.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS