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A married couple can exclude up to 500000 of the gain from the sale of their main home, provided certain conditions are met. True or false
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- Is a taxpayer allowed to take the € 120 exclusive for a vacation home that was never rented? Explain please.On October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their personal residence, which they have owned and Iived in lor & years. The realized gain of $325,000 is excluded under 5121 (Sale of a Principal Residence). They purchase another personal residence for $525,000 on October 2, 2019. Alice's employer transfers her to the Denver office in August 2020. Jasper and Alice sell their Chicago residence on August 2, 2020 and they purchase a residence in Denver shortly thereafter. The realized gain on the sale is $300,000. Which of the following statements is true regarding the August 2020 sale? O Jasper and Alice cannot exclude any of the gain from the August 2020 sale because they did not own and lve in the home for at least 2 years. O Jasper and Alice can exclude $104,167 on the August 2020 sale O Jasper and Alice can exclude $208,333 on the August 2020 sale. O Jasper and Alice can exclude $250,000 on the August 2020 sale. O Jasper and Alice can exclude…Timothy and Cleo are married (file a joint return) and purchased rental property in 2005 for $300,000. They sold it for $500,000 in 2020. How much must Timothy and Cleo report as a gain on their 2020 income taxes? Purchased the Home January 1, 2005 Rental Property January 1, 2005 through December 31, 2014 Principal Residence January 1, 2015 through December 31, 2020 Sold the Home December 31, 2020
- Which of the following is true with respect to the related party rules? a.A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. b.Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. c.A taxpayer's uncle is a related party for purposes of Section 267. d.Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e.None of these choices are correct.Required information [The following information applies to the questions displayed below.] This year, Leron and Sheena sold their home for $750,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Note: Leave no answer blank. Enter zero if applicable. a. Leron and Sheena bought the home one year ago for $600,000 and lived in the home until it sold. Answer is complete but not entirely correct. Taxable gain $ (350,000)This year, Leron and Sheena sold their home for $1,036,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. (Leave no answer blank. Enter zero if applicable.) Problem 5-81 Part-a (Algo) a. Leron and Sheena bought the home three years ago for $185,000 and lived in the home until it sold.
- aRhonda owns an office building that has an adjusted basis of $45,000. The building is subject to a mortgage of $20,000. She transfers the building to Miguel in exchange for $15,000 cash and a warehouse with an FMV of $50,000. Miguel assumes the mortgage on the building. Required: What are LaRhonda’s realized and recognized gain or loss? What is her basis in the newly acquired warehouse?Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.The answer for: a. Ramesh's recognized should be either ( gain or loss) and his recognized (gain or loss) on the sale...... b. one of this three choices Yes, But only if he forgoes the &121 exclision on the montain cabin Yes, the amount he doesn't use on the mountain cabin can be applied to the beach house No, the &121 exclusion must be applied to the residence he sells first Also, I need all to be answered please
- Bonnie and Clyde jointly own their own home when Clyde defaults on credit card debt. To determine if Clyde is insolvent, how will the home play into the calculation?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 gainPlease explain Barbara is trading real property used solely for business purposes for new real property to be used in his business. Barbara's current property has a fair market value of $330,000, but her adjusted basis in the property is $275,000. In this exchange Barbara will receive a new property worth $290,000 and $40,000 in cash. What is Barbara's recognized gain or loss in the current year related to this exchange?
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