Emil purchased an apartment building in 2016 for $200, 000 and made improvements over time in the amount of $50,000. The initial purchase included $15,000 for land value. Emil took all allowable depreciation, totaling $54, 000. He sold the entire property in 2022 for $350, 000, with no sale expenses. What are his total gains on the building and improvements only, reported in Part III of Form 4797?...
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Emil purchased an apartment building in 2016 for $200, 000 and made improvements over time in the amount of $50,000. The initial purchase included $15,000 for land value. Emil took all allowable
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- Required information [The following information applies to the questions displayed below] Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following alternative situations? (Assume accumulated depreciation on the home is $0 at the time of the sale.) (Leave no answer blank. Enter zero if applicable.) c. Sarah used the home as a vacation home from January 1, 2008, until January 1, 2019. She used the home as her principal residence from January 1, 2019, until she sold it on January 1, 2020. Gain recognizedIn 2019, José purchased a house for $191,400. He used the house as his personal residence. In June 2022, when the fair market value of the house was $331,300, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 mid-month ✔✓ convention. c. The cost recovery for 2022 is $ 5,510 X. 191,400 ✔. ✓ years, and it is subject to theChuck sold a tractor to a dealer for $16,000. He bought the tractor for $25,500 several years ago and has claimed $12,000 of depreciation deduction on the tractor. What is the amount and character of his gain or loss from the sale of the tractor?
- Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following alternative situations? (Assume accumulated depreciation on the home is $0 at the time of the sale.) Note: Leave no answer blank. Enter zero if applicable. a. Sarah used the home as her principal residence through December 31, 2019. She used the home as a vacation home from January 1, 2020, until she sold it on January 1, 2023. Answer is complete but not entirely correct. Gain recognized $ 50,000Brian acquired a rental house in 2004 for a cost of $80,000. Straight-line depreciation on the property of $26,000 has been claimed by Brian. In January 2020, he sells the property for $120,000, receiving $20,000 cash on March 1 and the buyer's note for $100,000 at 10 percent interest. The note is payable at $10,000 per year for 10 years, with the first payment to be received 1 year after the date of sale. Calculate his taxable gain under the installment method for the year of sale of the rental house. In your computations, round any division to two decimal places. Gain reportable in 2020 is $fill in the blank 1.Moran owns a building he bought during year O for $227,000. He sold the building in year 6. During the time he held the building, he depreciated it by $40,250. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) c. Moran received $182,000. Description Amount Total Gain/(Loss) Recognized Remaining $1231 gain (loss)
- AreaBurt purchased an apartment building on January 1, 2010, for $345,000. The building has been depreciated over the appropriate recovery period using the straight-line method. On December 31, 2022, the building was sold for $420,000, when the accumulated depreciation was $126,500. On his 2022 tax return, what should Burt report?a. Section 1231 gain of $75,000 and ordinary income of $126,500b. Section 1231 gain of $75,000 and unrecaptured depreciation of $126,500c. Ordinary income of $201,500d. Section 1231 gain of $126,500 and ordinary income of $75,000Kase, an individual, purchased some property in Potomac, Maryland, for $166,000 approximately 10 years ago. Kase is approached by a real estate agent representing a client who would like to exchange a parcel of land in North Carolina for Kase's Maryland property. Kase agrees to the exchange. What is Kase's realized gain or loss, recognized gain or loss, and basis in the North Carolina property in each of the following alternative scenarios? Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. b. The transaction qualifies as a like-kind exchange, and the fair market value of each property is $101,000.Moran owns a building he bought during year 0 for $223,000. He sold the building in year 6. During the time he held the building, he depreciated it by $53,500. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) Problem 11-44 Part-a (Algo) a. Moran received $200,000. Description Amount Total Gain/(Loss) Recognized Unrecaptured §1250 gain (and §1231 gain) Remaining §1231 gain (loss)
- On January 20, 2022, Javier Sanchez purchased and placed in service a new 7-year class asset costing $419,600 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2022, his business generated a net income of $503,520 before any § 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2022 and 2023. Total cost recovery deduction in 2022: $ 31,381 Total cost recovery deduction in 2023: $ 53,780 b. Complete Javier's Form 4562 (page 1) for 2022. Note: For 2022, the maximum § 179 is…Anton purchases a building on May 4, 2002, at a cost of $370,000. The land is properly allocated $40,000 of the cost (total cost $410,000). Anton sells the building on October 18, 2020, for $370,000. If an amount is zero, enter "0". a. What is the character of Anton's gain or loss on the sale if he uses the regular MACRS system and the building is an apartment building? Assume the accumulated depreciation at the time of the sale is $208,990. The total gain would be _____, of which ______is Section 1250 recapture and_______is unrecaptured Section 1250. Any balance is considered a long-term capital gain . b. What is the character of Anton's gain or loss on the sale if he uses the regular MACRS system and the building is an office building? Assume the accumulated depreciation at the time of the sale is $147,384. The total gain would be_____, of which _____ is Section 1250 recapture and ______ is unrecaptured Section 1250. Any balance is considered Section 1231 gainMilt Payner purchased an automobile several years ago for $40,000 and has held it as a personal asset ever since. This year he sold the automobile. Assume the taxable year is 2022. Required: a. Compute Milt's recognized gain or loss on the sale if Milt's amount realized on sale was $28,300. b. Compute Milt's recognized gain or loss on the sale if Milt's amount realized on sale was $55,000. The automobile was a classic Thunderbird and was purchased by a vintage car collector in Boston. Complete this question by entering your answers in the tabs below. Required A Required B Compute Milt's recognized gain or loss on the sale if Milt's amount realized on sale was $28,300. Note: If the results of a transaction do not result in a gain or loss, select "No recognized gain or loss".