gemini auto repair is a calendar year taxpayer. In2019, the repair shop purchased a light weighttruck for $44,000 that it used to drive customersback and forth to their cars while the shop workedon their cars (i.e. for business purchases). in 2020,the repair shop sold the truck dor $33,000. assumethat the lightweight truck was the only assetGemini purchased in 2019. Gemini auto repairopted out of Sec. 179 and bonus depreciation for2019.do not use any macrs tables to calculate regulardepreciation, instead just assume that thedepreciation deductions gemini actually took forthe truck for 2019 and 2020 were $6,000 and$7,000, respectively. what was the total amount ofgain(or loas) for Gemini in 2020 on the sale of thetruck?1. $11,000 loss2. $5,000 loss3. $4,000 loss4. $33,000 gain5. $2,000 gain

Gemini Sold an asset acquired in 2019 in 2020, to calculate whether it is in profit or loss.

Answered: $7,000, respectively. what was the…

Business

Accounting

$7,000, respectively. what was the total amount of gain(or loas) for Gemini in 2020 on the sale of the truck? 000 Jose

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 35P

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Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that repairs automobiles. In late December 2019, the company repaired Samuel Mosleys car and charged him 1,000. Samuel did not think the problem had been fixed and refused to pay; thus, Trip refused to release the automobile. In early January 2020, Trip made a few adjustments and convinced Samuel that the automobile was working properly. At that time, Samuel agreed to pay only 900 because he did not have the use of the car for a week. Trip said fine, accepted the 900, and released the automobile to Samuel. An IRS agent thinks Trip, as an accrual basis taxpayer, should report 1,000 of income in 2019, when the work was done, and then deduct a 100 loss in 2020. Prepare a memo to Susan Apple, the treasurer of Trip, with the recommended treatment for the disputed income.
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
A taxpayer purchased a light truck for $27,500 in June 2021. He uses the truck 100% business .What is his first year MACRS deduction for the truck if the takes the special depreciation deduction (i.e., bonus depreciation? A. $3,160 B. $5.860 C. $10,200 D. $18,200
Simon rents his cottage when he and his family are not using it. It qualifies as a vacation home rental. In 2021, he had rental income of $5,200. His deductible expenses were: Advertising $350 Commissions $775 Depreciation (rental portion) $1,500 Maintenance (rental portion) $750 Mortgage interest (rental portion) $1,250 Pest control (rental portion) $300 Prior-year carryover $500 Real estate tax $800 What amount of unallowed expense will Simon carry forward to next year? $0 $500 $1,025 $1,500
Megha Nhon Corp., a vat registered taxpayer made the following acquisition of equipment from vat registered suppliers (net of vat) during 2021 and 2022: Date Purchase price Useful life (yrs) Oct. 1, 2021 2,000,000 6 Apr. 1, 2022 2,500,000 2 The equipment acquired on Oct. 2021 was sold on Apr. 2022. How much is the creditable input vat on Apr. 2022? P216,000 P324,000 P516,000 P300,000
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13.
39. Simpson Company, a calendar year taxpayer, acquires an apartment building on May 22, 2023 for $800,000. What is the maximum cost recovery deduction it may take for 2022? a. $25,911. b. $18,297. c. $31,365. None of the above. e. $22,617.
During 2020, Suki rented her vacation home for 90 days and lived in the home for 60 days. The vacation home is classified as personal/rental use. Suki's gross rent revenue is $25,000. For the entire year, the vacation home incurred the following expenses: C6 Ex38 Real estate taxes Mortgage interest expense Utilities & maintenance Depreciation $6,200 $12,000 $4,500 $6,500 Using the IRS approach: A) Calculate and list the expenses directly attributable to Suki's rental income (for AGI). B) Calculate Suki's gain (loss) from the vacation rental activity, reportable on 1040, Schedule E. C) Calculate and list any remaining and available itemized deductions from AGI, reportable on Suki's 1040, Schedule A.
D1. A taxpayer (65 years old) sold a holiday home in the previous year of assessment. The taxpayer does not buy and sell houses regularly. The base cost of the house is R350 000. In terms of the sale agreement the taxpayer received R600 000 on the date of the sale in the previous year of assessment. The sales agreement stipulates that the taxpayer will receive 10% of the net profit generated from the rental of the house in the current year of assessment as the balance of the selling price. On 1 July of the current year of assessment the taxpayer received R50 000 representing the 10% of the net profit. Calculate the taxpayer's taxable capital gain or assessed capital loss for the current year of assessment.
Pam and Sam Joseph file a joint return for the calendar year 2018 showing AGI of $350,000. List of their itemized deduction us provided below. Credit card interest Home mortgage interest (loan qualifies as acquisition indebtedness) Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) Property taxes on home State income tax Charitable contributions Tax return preparation fees 1000 18,000 $48,500 18,400 19,500 28,500 1,500 All the expenses are that provided above are before any applicable limitation, unless stated otherwise. Determine the amount of itemized deduction Josephs may claim for the year. A) $132,900 B) $98,900 C) $70,000 D) $55,000
Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009