Juliana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fairmarket value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526.a. Tom's basis in the land is $90,100 V and he has a realized gain-v of $23,246 x on the sale.b. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036.Tom's basis in the land is $113,256 x and he has a realized lossV of12,614 X on the sale.

Unrealized Gain- An unrealized gain is the amount of profit earned by an investor by holding the…

liana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fain arket value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526. Tom's basis in the land is $ 90,100 V and he has a realized gain -v of $ 23,246 x on the sale. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036. m's basis in the land is $ 113,256 X and he has a realized Joss v of $ 12,614 x on the sale.

liana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fain arket value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526. Tom's basis in the land is $ 90,100 V and he has a realized gain -v of $ 23,246 x on the sale. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036. m's basis in the land is $ 113,256 X and he has a realized Joss v of $ 12,614 x on the sale.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Mr. and Mrs. Scoler sold commercial real estate for $608,000. Their adjusted basis at date of sale was $463,000 ($519,000 cost – $56,000 straight-line accumulated depreciation). They will file their tax return as married filing jointly. Required: Compute the Scolers' income tax and Medicare contribution tax on their recognized gain assuming that this sale was their only property disposition this year and their marginal tax rate on ordinary income is 37 percent. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Amount Income tax on recognized gain Medicare contribution tax on recognized gain Total
Mandy and Hal (mother and son) purchased land for $700,000 as joint tenants with right of survivorship. Of the $700, 000 purchase price, Mandy provided $400,000 and Hal $300,000 (of which $200,000 had been received as a gift from Mandy). Hal dies first when the land is worth $4,000,000. As to the land, Hal's gross estate must include: $ 100,000. $571, 428 $2,000,000 $1,714, 286
Mandy and Theo exchange real property in a like-kind exchange. Mandy receives real property with a fair market value of $76,800 and transfers real property worth $53,760 (adjusted basis of $37,632) and cash of $23,040. What is Mandy's realized and recognized gain? If an amount is zero, enter "0". Mandy's realized gain is $ and her recognized gain is $
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.
13.
Cody and Chelsi, who are married to each other, own their home together titled as community property. They purchased the home three years ago for $200,000. After improvements and a surge in the market, the home is now worth $400,000. If Cody died today and left his share of the home to his daughter Alyssa, what is Alyssa's federal income tax basis in the home? a. $50,000. b. $100,000. c. $150,000. d. $200,000.
Many years ago James and Sergio purchased property for $450,000. Although they are listed as equal co-owners, Sergio was able to provide only $200,000 of the purchase price. James treated the additional $25,000 of his contribution to the purchase price as a gift to Sergio. If the property is worth $900,000 at Sergio's death, what amount would be included in Sergio's estate if the title to the property was tenants in common? What if the title was joint tenancy with right of survivorship?
Nikeya sells land (adjusted basis of $120,000) to her adult son, Shamed, for its appraised value of $95.000. Which of the following statements is correct? Nikeya's recognized loss is $25,000 ($95.000 amount realized - $120,000 adjusted basis). Shamed's adjusted basis for the land is $120,000 ($95.000 cost+$25,000 disallowed loss for Nikeya). If Shamed subsequently sells the land for $112,000, he has no recognized gain or loss. Only a. and b. are correct.
Reese and Jake engage in a like-kind exchange. Reese transfers real estate with a fair market value of $500,000 and an adjusted basis of $200,000 to Jake. Jake transfers real estate worth $700,000 and an adjusted basis of $250,000, plus a $200,000 mortgage on the property, to Reese. What is Jake's potential or deferred gain before and after the transaction? $450,000 potential gain before the transaction; $50,000 potential gain after the transaction. $250,000 potential gain before the transaction; $50,000 potential gain after the transaction. $450,000 potential gain before the transaction; $250,000 potential gain after the transaction. $250,000 potential gain before the transaction; $200,000 potential gain after the transaction. Income Tax
During the current year, Jeff sells a tract of land for $700,000. The property was received as a gift from Corina on March 10, 1995, when the property had a $240,000 FMV. The taxable gift was $230,000 because the annual exclusion was $10,000 in 1995. Corina purchased the property on April 12, 1980, for $56,000. At the time of the gift, Corina paid a gift tax of $10,000. In order to sell the property, Jeff paid a sales commission of $14,000. Read the requirements. Requirement a. What is Jeff's realized gain on the sale? Select the formula, then calculate Jeff's realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.) Minus: Realized gain Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was $50,000 as of the date of the gift? If the FMV of the gift property was $50,000 as of the date of the gift, Stan would have realized a gain on the sale of
Jacob owns a modest house on a large, ocean-front lot in a region where development is booming. Seeking to cap his estate-tax exposure, Jacob sells a remainder interest in the property to Alice — Jacob’s committed partner to whom he is not married — for its actuarial value. Jacob continues to reside in the property pursuant to his retained life estate for the remainder of his lifetime. At the time of the sale of the remainder, the fee interest was valued at $3 million, and the remainder was valued at $1 million. Upon Jacob’s death five years later, the value of the property had increased to $5 million. Discuss the estate tax consequences to Jacob’s estate.
Constanza, who is single, sells her current personal residence (adjusted basis of $244,500) for $684,600. She has owned and lived in the house for 30 years. Her selling expenses are $34,230. What is Constanza's realized and recognized gain?Constanza's realized gain is $fill in the blank 1 and her recognized gain would be $fill in the blank 2.