Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $60,200 each. Dexter's basis in each lot sold is $42,140, and he incurs total selling expenses of $2,408 on each sale. What is the amount of Dexter's capital gain and ordinary income?

Q: Determine whether the taxpayer in each of the following situations has real- ized income. Explain…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the…

A: Working Notes: 1. Selling Price = $52,200 * 8 = $417,600 2. Selling Expenses = $2,088 * 8 = $16,704…

Q: Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur…

A: The investment represents the employment of funds to something from where the company would get some…

Q: Jerry bought his home 15 years ago for $60,000. Three years ago, Jerry married Debbie and she moved…

A: If any married taxpayer files joint return may exclude income up to $500,000 gains from selling…

Q: What are the tax consequences to Merle and Ned? Would Ned recognize any gain if he sold the stock…

A: a. Merle realizes a loss of $15,000 $26,000 (amount realized) - $40,000 (adjusted basis)] Which is…

Q: identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of…

A: Tax:   Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Clara received from her Aunt Sona property with an FMV at the date of the gift of $40,000. Aunt Sona…

A: Aunt Sona gifted a property to Clara Fair Market Value on date of gift = $40000 The property was…

Q: Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a…

A:

Q: What amount is included in the sibling's net income for tax purposes from the sale of the land?| $…

A: Given information is: H sold land to his sibling for $200,000. The land is used for farming and at…

Q: Simone, a single taxpayer, bought her home in Orlando 25 years ago for $55,000. She has lived…

A: Given that: Purchase price of home = $55000 Sale value of home = $405000

Q: How is the land recorded for § 704(b) book capital account purposes? What is Padgett’s tax basis in…

A: Land: Land is a tangible asset that is presented as a part of fixed assets in the balance sheet.…

Q: Rob and Matt each own 50 percent of the Community Corporation, an S corporation with a calendar tax…

A: Given, Rob and Matt each own = 50% of an S corporation  Therefore, Share of Rob and Matt = 1 : 1…

Q: Tom Cruiser is buying a single-family residence in Oakvile, Ontario, for $805,000. According to the…

A: Taxable income: It is the income on which tax is calculated that is to be paid to the government and…

Q: Leona sold California real estate for $632,000 and she does not meet any of the exceptions for…

A: Withholding rate is 3 1/3 % of total sale price. So the withholding tax = 632000* 0.03333% = $ 21046

Q: Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a…

A: It is the deduction available on the qualified business income subject to the provisions of IRS.…

Q: Katie, a single taxpayer, is a shareholder in Engineers One, a civil engineering company. This year,…

A: The question is based on the concept of Taxation

Q: Janna is a sole proprietor engaged in the distribution of real estate. During the year, he sold a…

A: For taxation purpose, sale proceeds shall be considered as fair market value Taxable amount = Fair…

Q: Michelle is an active participant in the rental condominium property she owns. During the year, the…

A: Total Income of Michelle = $ 124,000 + $ 10,900 + $ 3,900 = $ 138,800

Q: anco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year,  his basis in…

A: Fair value is the actual value of asset or liability on a particular date in the market which are…

Q: Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had…

A: For tax purposes, business income is a type of income earned that falls under the category of…

Q: Matthew and Julia are married and will file a joint tax return. Julia owns a hair salon which she…

A: QBI stands for Qualifies business Income which implies the total amount of all the qualified items…

Q: Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he…

A: Answer: Unfortunately the IRS prohibits the deductions of rental losses against any other sources of…

Q: llene rents her second home. During the year, llene reported a net loss of $15,700 from the rental.…

A: correct answer is $10,450

Q: Declan and Olivia are married and will file a joint tax return. Olivia has a sole proprietorship…

A: a) Taxable income before QBI deduction = $389800 QBI deduction = 20% of taxable income…

Q: Zane, an individual, owns all of the outstanding common stock in XYZ Utilities Corporation. Zane…

A: Given that: Stock basis = $8000 Accumulated Earnings = $25,000

Q: a. What is the amount of the Porters’ investment interest expense deduction for the year?   b. What…

A:

Q: Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes…

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

Q: Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both…

A: Section 1231 is used for depreciable real property for more than one year. Under this section gain…

Q: Louise owns 45 percent of a partnership, and her brother owns the remaining 55 percent interest.…

A:

Q: Richard donates publicly traded Gold Company stock with a basis of $1,000 and a fair market value of…

A: Please find the answer to the above question below:

Q: Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a…

A: It is the deduction available on the qualified business income subject to the provisions of IRS.…

Q: e sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Leron and…

A: Taxable Income Capital gains arising from the transfer of a long-term capital asset, such as an…

Q: Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for…

A: Purchase price = $63,000 Adjusted value now= $37,800 Sale price = $41,580 Gain = Sale price -…

Q: Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for…

A: Gain on equipment sale = selling price - Adjusted basis For first equipment = 17000 - 15500 = 1500

Q: Robert acquired his rental property 10 years ago for $110,000 and sold it in the current year for…

A: Depreciable cost=Cost of property-Accumulated depreciation=$110,000-$35,000=$75,000

Q: Anna bought a condominium unit under installment basis, to be used as his office in the practice of…

A: Purchase under installment basis is that the buyer of the property or anything buys goods but the…

Q: Daniel, who is single, purchased a house on May 15, 1997, for $133,000. During the years he owned…

A: The question is multiple choice question. Required  Choose the Correct Option?

Q: Aiden is married and has salary income of $80,000 and total itemized deductions is $30,000. During…

A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…

Q: In 2006, Douglas purchased an office building for $500,000 to be used in his business.  He sells the…

A:

Q: Oscar, a single taxpayer, sells his residence of the last 10 years in January of 2019 for $190,000.…

A: Capital gain: When the taxpayer earned income from the transfer of assets than its chargeable under…

Q: Dexter owns a large tract of land and subdivides it for sale. Assume thatDexter meets all of the…

A: All amounts are in dollar.

Q: lyn owns land that she acquired three years ago as an investment for $250,000. She sells the land…

A: Concept of doctrine of Capital recovery

Q: Taxpayer is the sole owner of the home that she purchased in 2015 and that she and Spouse have lived…

A: The sole owner of the house means that the taxpayer is the only owner of the home. The primary…

Q: Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $75,000…

A: The current FICA tax rate is 7.65% (i.e. social security tax rate of 6.2% and medicare tax rate of…

Q: Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for…

A: Calculation of realized gain, recognized gain and adjusted basis of new residence:Answer: Realized…

Q: Alicia sold her personal residence to Rick for $300,000. Before the sale, Alicia paid the real…

A: Basis is not dependent on the person who paid taxes. It can be calculated by determining the…

Q: Charlene owns a 70 percent interest in Maupin Mopeds, which is organized as a partnership. She wants…

A: The problem is the tax treatment of a more than 50 percent partner with a non-liquidating…

Q: Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had…

A: The qualified business income deduction (QBI) seems to be a tax break that allows qualifying…

Q: Olga is married and files a joint tax return with her husband. What amount of AMT exemption may she…

A: The AMT is charged at two rates: 26% and 28%. For the year 2021, the AMT exemption level is $73,600…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.