Jerome and Shanna sold a piece of property for $300,000, claiming that their basis was $150,000 and report a taxable gain of $150,000. Their 2019 return filed in February 2020 reported gross income of $250,000. Jerome and Shanna later determine that the property’s basis was actually $50,000, not $150,000, resulting in a $100,000 under-statement of income on the 2019 return. The statute of limitations period in which the IRS may assess additional tax in this situation expires on April 15 of what year?
Jerome and Shanna sold a piece of property for $300,000, claiming that their basis was $150,000 and report a taxable gain of $150,000. Their 2019 return filed in February 2020 reported gross income of $250,000. Jerome and Shanna later determine that the property’s basis was actually $50,000, not $150,000, resulting in a $100,000 under-statement of income on the 2019 return. The statute of limitations period in which the IRS may assess additional tax in this situation expires on April 15 of what year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jerome and Shanna sold a piece of property for $300,000, claiming that their basis was $150,000 and report a taxable gain of $150,000. Their 2019 return filed in February 2020 reported gross income of $250,000. Jerome and Shanna later determine that the property’s basis was actually $50,000, not $150,000, resulting in a $100,000 under-statement of income on the 2019 return. The statute of limitations period in which the IRS may assess additional tax in this situation expires on April 15 of what year?
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