Need Help with this Question provide Answer in text Fred Burk bought a plot of land with a cashpayment of $40,000 and a purchase moneymortgage of $50,000. In addition, Berk paid $200 fora title insurance policy. Berk's basis in this land is:a. $40,000b. $40,200c. $90,000d. $90,200

Step 1: introduction to the Basis:While determining the basis of a fixed asset, the purchase price,…

Answered: Fred Burk bought a plot of land with a…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 7CPA

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2) Tania purchased a land ($750,000) and a little old home ($150, 000) located on the land for $900,000. She will depreciate the amount of A. $900,000 over the useful life of the Land B. $150,000 over the useful life of the Home C. $750,000 over the useful life of the Land D. $900,000 over the useful life of the Home
Charlie exchanged land with an adjusted basis of $50,000 and received another parcel of land worth $35,000 plus $10,000 of cash. Charlie held the original land for investment purposes and will do the same with the new parcel. Due to the exchange, Charlie will recognize:
Jennifer Thompson is the grantor of the Jennifer Thompson Trust, a revocable grantor trust. Ten years ago, Jennifer acquired a piece of real estate for $200,000. A year later, she spent $14,000 in improvements on the property. This year, when the value of the property was $300,000, she transferred it to the trust. What is the trust's basis in the property? A. $200,000 B. $214,000 C. $300,000 D. $314,000
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
Job purchased land as an investment on January 12, 2018, for $80,000. On January 31, 2021, Job sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $62,000 on the land. What is the amount realized (not gain realized) on the sale of the land? a.$10,000 b.$23,000 c.$95,000 d.$103,000 e.None of these choices are correct.
Oisha gave a parcel of realty to Julie valued at $197,500 (Oisha purchased the property five years ago for $83,000). a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $204,800. What is the amount of her gain or loss, if any, on the sale? Answer is complete but not entirely correct. $ 182.500 $ 121,800 a. Amount of taxable gift b. Amount of gain
Angelina gave a parcel of realty to Julie valued at $167,500 (Angelina purchased the property five years ago for $71,000). Required: a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $174,000. What is the amount of her gain or loss, if any, on the sale? a. Amount of taxable gift b. Amount of gain
During the current year, Ethel exchanges a business land for different business land in a like-kind exchange. Ethel's adjusted basis in the land given up is $7,000, and she receives a land worth $13,000 plus $3,000 cash. a. Calculate the amount of gain realized by Ethel on the exchange. b. Calculate the amount of the gain that must be recognized by Ethel on the transaction.
Tom and Elizabeth purchase land for $1,300,000—Tom furnishes $390,000 and Elizabeth $910,000 of the purchase price. Title to the property is held as joint tenants with right of survivorship. Elizabeth dies first 10 years later when the land is worth $2,600,000. a. How much of the property is included in Elizabeth's gross estate? $ 1,820,000 b. What is Tom's income tax basis in the property? $___
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Fred Burk bought a plot of land with a cash payment of $40,000 and a purchase money mortgage of $50,000. In addition, Berk paid $200 for a title insurance policy. Berk's basis in this land is: a. $40,000 b. $40,200 c. $90,000 d. $90,200