In April 2019, Mario purchased a new refrigerator for $700 and placed it in service in his rental house.  He elected not to claim the special depreciation allowance.  Mario sold the rental hous, including the refrigerator, in November 2021.  After factoring in depreciation, his adjusted basis in the refrigerator at the time of sale was $323.  Under what property section of the Internal Revenue Code will the sale of the refrigerator fall? - Section 179 - Section 1245 - Section 1250 - Section 1255

Q: Umair sold some equipment he used in his business on August 29, 2022, that was originally purchased…

A: To calculate gain or loss on sale of the equipment, the book value of the same has to be arrived at…

Q: Kristen purchased a new laser cutting machine for her business (seven-year asset) on September 22,…

A: The asset's cost recovery for 2023 may be ascertained using the Modified Accelerated Cost Recovery…

Q: Christie sued her former employer for a back injury she suffered on the job in 2019. As a result of…

A: Introduction: Gross income refers to the gross profit made by a corporation through the selling of…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is the amount that is charged on the fixed assets by which the asset value decreases…

Q: On June 2, 2020, Sam's Auto Sales sold Jim a used car on account for $20,000. Sam's Auto Sales uses…

A: When an entity sells goods on credit, there may be chances of bad debt losses arising out of the…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Vehicle cost = $92,000 Business use = 20%   Computation of maximum depreciation for the automobile…

Q: Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for…

A: Calculation of realized gain: Realized gain can be calculated by using the below formula,

Q: On 15 June 2020, Business Taxpayer sold furniture (seven-year property) it had placed in service on…

A: Year  Depreciation Rate        1 14.29%        2 24.49%        3 17.49%        4 12.49%…

Q: Stan sold residential rental property he had owned for three years. As part of this sale, he…

A: Introduction:- The following basic information as follows under:- Stan sold residential rental…

Q: The susceptibility of an assertion about a class of transaction, account balance or disclosure to a…

A: Audit risk is the possibility that an auditor won't find fraud or errors while reviewing a client's…

Q: Andre acquired a computer on March 3, 2022, for $25,400. He elects the straight-line method for cost…

A: To calculate Andre's cost recovery deduction for the computer for tax years 2022 and 2023, we need…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Modified Accelarted Cost Recovery System of depreciation allows…

Q: On February 1, 2019, Patterson (who is single) sold his principal residence (home 1) at a $150,000…

A: Tax exemption is the decrease or expulsion of a risk to make an obligatory installment that would…

Q: Moran owns a building he bought during year 0 for $198,000. He sold the building in year 6. During…

A: Section 1231 of the Internal Revenue Code in the United States defines the tax treatment of these…

Q: Larry leased his building to Terry to conduct a hotel business. The lease requires Terry to repair…

A: Assessment is a procedure to determine the income which is required to be reported for different…

Q: A taxpayer bought a second-hand vehicle for $12,000 in August 2023 and sold it for $14,000 in April…

A: Capital Gain -The profit that is made when an investment or capital asset is sold for more than it…

Q: William purchases nonresidential real property costing $300,000 and places it in service in March…

A: Answer  As per MACRS depreciation schedule  Depreciation rate  for first year  2.03333%  For second…

Q: Daisy Corporation,

A: 1]  Under the accrual method, you generally report income in the tax year you earn it, regardless of…

Q: Farhad canceled a note issued by Emma (Farhad's niece) that arose in connection with the sale of…

A: Farhad sold a property to Emma and in return, Emma issued a note (promise to pay) to Farhad. The…

Q: Craig purchases and places in service in 2023 tangible personal property costing $2,900,000 for his…

A: Section 179 Deduction:It's a tax code that allows businesses to deduct the cost of certain types of…

Q: On May 31, 2021, Joe's Car Lot sold Anthony a used car on account for $20,000.  Joe's Car Lot uses…

A:

Q: Alice purchased office furniture on September 20, 2022, for $100,000. On October 10, 2022, she…

A: Cost recovery deduction is the amount that a firm can deduct from its income for using the capital…

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A: Cost recovery ratio it is the ratio of fare income to total operating costs, it is an important…

Q: Steve Drake sells a rental house on January 1, 2022, and receives $100,000 cash and a note for…

A: Solution:-Steve Drake plans to sell the rental house on January 1, 2022. The query involves various…

Q: market value of $28,000 and an adjusted basis of $14,000 was completely destroyed. She received…

A: In case of any accident or any loss may be suffered are subjected to deductions to the taxable…

Q: - first quarte MACRS M rter

A: MACRS is Modified Accelarated Cost Recovery System. The total depreciation is same as…

Q: Casper used the following assets in his Schedule C trade or business in the tax year 2021. Casper is…

A: MACRS Depreciation Modified Accelerated cost recovery system Depreciation which are implemented by…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Lincoln purchases nonresidential real property costing $300,000 and places it in service in March…

A: The depreciation method used for real and personal property connected to residential or commercial…

Q: John and Jill are a de facto couple who purchase a family home and a rental property in January…

A: Tax is the charge which is levied on the taxable income. Capital gain is the gain which arises when…

Q: Moran owns a building he bought during year 0 for $198,000. He sold the building in year 6. During…

A: The United States Internal Revenue Code, Section 1231, specifies how these profits and losses are…

Q: equipment under $179 or bonus. On December 15, 2021, he sells the equipment. What is his cost…

A: Travis did not opt to expense the equipment under sec 197 or bonus. So, cost recovery deduction…

Q: In 2020, Juan entered into a contract to write a book. The publisher advanced Juan $50,000, which…

A: Marginal tax Rate: It is the  additional tax payable  for every additional dollar earned as income.…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Automobiles under MACR depreciation is classified under 5 year property class, 200%, half year…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.