During the current year, Jeff sells a tract of land for $750,000 The property was received as a gift from Janell on March 10, 1995, when the property had a $ 200,000 fair market value (FMV). The taxable gift was $ 190, 000 because the annual exclusion was $ 10,000 in 1995. Janell purchased the property on April 12, 1980, for $ 86,000 At the time of the gift, Janell paid a gift tax of $8,000 In order to sell the property, Jeff paid a sales commission of $17, 000 Read the requirements. AGI prior to sale of stock + Gain (loss) on sale of stock = AGI Analyze each transaction below, independent of the others, and determine Brandon's AGI in each case. (Do not round intermediary calculations. Only round the amounts you input into the cells to the nearest dollar. Use a minus sign or parenthesis to enter a loss.) a. He sells the stock on October 12, 2022, for $ 274,500. b. He sells the stock on October 12, 2022, for $ 208,250. c. He sells the stock on December 16, 2022, for $268,000.

In April 2020, Emma acquired a machine for $60,000 for use in her business. The machine is claslified as 7- year property. Emma does not expense the asset under Sec. 179 or bonus depreciation. Emma's depreciation on the machine for 2020 is A) $30,000. B) S60,000. C) $6,428. D) $8,574. b. In May 2020, Cassie acquired a machine for $30,000 to use in her business. The machine is classified as 5-year property. Cassie does not expense the property under Sec. 179 or bonus depreciation. Cassie's depreciation on the machine for 2020 is A) $3,000. B) $6,000. C) $12,000. D) S15,000. С. Mehmet, a calendar-year taxpayer, acquires 5-year tangible personal property in 2020 and does not use Sec. 179 or bonus depreciation. Mehmet places the property in service on the following schedule: Date placed in service January 15 May 25 November 8 Acquisition Cost $50,000 S100,000 $200,000 What is the total depreciation for 2020? d. On May 1, 2009, Empire Properties Corp., a calendar-year taxpayer, purchased an…

Zofi died on February 1, 2021 leaving a 1,000 sq.m. parcel of land in BGC, Taguig, with the following valuations:Fair Market Value as determined by the City Assessor 25,000/sq.m.Zonal Value as determined by the BIR, P18,000,000Fair Market Value by independent appraisers, P30,000,000What is the value of the piece of land in the gross estate?

Bart sold a parcel of land to Vhee for P400,000.00. In the Deed of Sale, it was expressly stipulated that "at any time after the expiration of nine (9) years to be computed from August 1, 1992, the vendor, his heirs or successors-in-interest has the option and priority to purchase the land for the consideration of P400,000.00." On August 2, 2001, the heirs of Bart commenced an action against hee to compel the latter to reconvey the land to them pursuant to the contractual provisions of the afore-quoted Deed of Sale. Vhee stands squarely on the proposition that the stipulation in the contract giving the vendor, his heirs or successors-in-interest the "option" to purchase the land is void and contrary to law, particularly Article 1606 of the Civil Code. Question: Rule on the contention of Vhee citing legal reasons.

Paul gave a gift (land) on January 1, 20x4, with an FMV of $80,000 to Shirely. Paul originally bought the land on January 1, 20x1 for $100,000. On January 1, 20x6, Shirley sold the land for $95,000. What is Shirley's holding period on the date of sale: 1. 2 years 2. 3 years 3. 5 years 4. The holding period is irrelevant because there is no gain or loss

Hamlet places in service a 7-year class asset on November 23, 2023, for $449,400 (the only asset acquired during the year). Hamlet does not elect immediate expensing under § 179. He does not claim any available additional first year depreciation. This is Hamlet's only tangible personal property acquisition for the year. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction for 2023 and 2024. 2023: Sfill in the blank 1

B sold capital property in the current year for net proceeds of $500,000. The property has an adjusted cost base of $100,000. B received $200,000 at the time of the sale and a note for the balance to be paid in equal annual installments over the following three years. What is the minimum taxable capital gain to be reported in the current year.

The Taffy Trust is a simple trust. Sean is its sole beneficiary. In the current year, the trust earns $12,000 in taxable interest and $30,000 in rental income. In addition, the trust recognizes a $4,000 long-term capital gain and $1,100 long-term capital loss. The trustee charges a fee of $6,500 for the year. Depreciation related to the rental property is $2,800.  However, if the trust agreement allocates one-half of the fiduciary's fees as well as all of the capital gains and losses to income, the trust accounting income is ?

In March 2019, Helen Carlon acquired used equipment for her business at a cost of 300,000. The equipment is five-year property for regular tax depreciation purposes. a. If Helen depreciates the equipment using the method that will produce the greatest deduction for 2019 for regular income tax purposes, what is the amount of the AMT adjustment? b. Draft a letter to Helen regarding the choice of depreciation methods. Helens address is 500 Monticello Avenue, Glendale, AZ 85306.

Which of the following statements with respect to the depreciation of property under MACRS is incorrect? Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service. If a taxpayer elects to use the straight-line method of depreciation for property in the 5 -year class, all other 5 -year class property acquired during the year must also be depreciated using the straight-line method. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid-quarter convention. Real property acquired after 1986 must be depreciated using the straight-line method. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.