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Q: Shannon purchased some used equipment for her business in November of last year. She originally…
A: Depreciation is the part of cost of a fixed asset written off as expense during a year. Depreciation…
Q: Bryan and Geena had purchased a house 10 years ago. They insured the house for RM650,000 with the…
A: Replacement cost coverage clause- It is a property insurance clause that is defined in the insurance…
Q: 1. BeBe had a tough year! She had two different unfortunate casualties during the year. First, her…
A: Deductions for the loss are those allowable or standard deductions which the taxpayer is allowed to…
Q: John Johnson, single, sold his home that he had owned for 20 years for $650,000. He purchased it for…
A: Gain is the amount that is difference between the purchase price and sales price.
Q: Jane had AGI of $70,000 in 2020. During the year, her personal winter cabin was damaged by a fire.…
A: Since you have posted two questions we will do the first one for you. To get the other question done…
Q: Charles invested $205,000 to purchase a home. After 15 years, she sold the home for $260,000.…
A: Effective interest rate is a measure that tells the annual interest earned on investment for the…
Q: 9. Daisy's warehouse is destroyed by a tornado. The warehouse has an adjusted basis of $200,000 when…
A: Deferred realized gain : The tax assessees have the option to choose between defer the realized…
Q: T purchased a 600 acre farm for $60,000. T sells to a power company an easement for 20 acres along…
A: Where the underlying facts show that the grant of an easement affects just a section of an actual…
Q: An individual taxpayer received a valuable painting from his uncle, a famous artist who painted it.…
A: Any capital asset held by an individual for more than 36 months gets transferred(sold), the gain…
Q: John Pete is aware that
A: Capital gains taxes are required on the earnings from the sale of most assets if they are maintained…
Q: -d a property for his For $100,000. At the tax assessment allo erty value to the lan d, Erik decided…
A: Tax assessment refers to the process of compiling and checking all the data filed by a taxpayer in…
Q: Denise's AGI is $145,000 before considering her single rental property. During the year, Denise had…
A: The adjustment of rental loss depends on the marital status of an individual, participation in…
Q: A few years ago, Pat purchased Elysian Fields Farm for $1,100,000. The property included 120 acres…
A: Gain can be referred to the amount received from the sale or realization of an investment after…
Q: Mr. King is disposing of a property which he bought for $5,000,000. The selling price is $3,000,000.…
A: A capital gain/loss arises when a capital asset is sold or disposed of. It is the difference between…
Q: Ms. Stacy Lopez owns a city home in Vancouver, as well as a chalet at the Cyprus Mountain ski area.…
A: A capital gain is increases value in the capital assets and is reported in year when assets is sold.…
Q: You bought a house in 2004 for $150,000. Sadly, you suffered an injury. Your doctor prescribes water…
A: Here I suffered an injury and doctor prescribed water aerobics as physical therapy. So the cost of…
Q: Miguel and Patricia recently sold some land they owned for $200,000. They received the land five…
A: Given, Land sold = $200,000 Aunt Sela purchased land = $20,000 Property = $100,000 Gift tax =…
Q: The taxpayers Mr Grieve and his wife purchased a rundown farming property of 216 acres for $33,000…
A: Partnership refers to the form of legal act between two or more partners who have mutually agreed to…
Q: There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this…
A: It is the change in material amount of the assets or securities recorded at their initial cost. The…
Q: Mr. Ali purchased a fire insurance policy with a Sum Assured RO. 10,000. The value of his house is…
A: Claim is the amount which is to be received by the person (insured) against the damage done.
Q: Will purchased a home for $350,000 five years ago. He did significant renovations and additions…
A: Insurance refers to the coverage provided by the insurer to the insured in case of any uncertainty.…
Q: Answer in great detail the following John Peter is aware that there is no Capital Gains tax in…
A: The Income Tax Act largely regulates how earnings from the sale of property, particularly land, are…
Q: IMIS. Ennis, a ead of nc
A: Income tax due:Income tax due refers to the actual amount of tax that an individual or business owes…
Q: John purchased a house for $300,000. It is now worth $800,000 4 years later. Johns fiancee lived…
A: Profits from home sales are deemed capital gains and will be taxed at federal rates of 0%, 15%, or…
Q: Raymond and Susan are married and 55 years old. They sell their personal residence for $850,000…
A: The objective of this question is to calculate the amount of gain that Raymond and Susan should…
Q: Mr. Charles owns a private garbage dump. He has been asked that to avoid leaks that contaminate the…
A: Life of the project is 5 years. Minimum rate of return is 8% annual compounded monthly. To Find:…
Q: Nancy Valentino lives in a duplex that she owns at 14 Lancaster Drive, Salem, OR 97305. Nancy rents…
A: Schedule E - It is used for calculation of your net income or loss from rental real estate and…
Q: During 2019, Janet lost her house due to a national disaster. Janet bought the house in 2000 for…
A: If the property is a business or income-generating asset and if it is completely destroyed, then the…
Q: Miss Zena Quinn purchased a property in 2011 for $3,000,000. She is now including her two children…
A: When you sell a financial item (such as stocks, real estate, or other assets) for more money than…
Q: 2. Jordan has some damages on his business property when tornado hit his area. Her truck was used…
A: Deductible casualty loss: A deductible casualty loss refers to a loss that results from the damage,…
Q: Jiu has $105,000 of losses from a real estate rental activity in which she actively participates.…
A: AGI means the annual gross income which is calculated before deducting any deductions.
Q: Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jccasta has made…
A: Formula: Adjusted basis in the building = Apartment cost + Capital improvements - Depreciation…
Q: Butte sold a machine to a machine dealer for $51,200. Butte bought the machine for $53,800 several…
A: Depreciation expense refers to amount of depreciation that is reported on income statement.
Q: Dave bought a rental property for $550,000 cash. One year later, he sold it for $530,000. Suppose…
A: Rental Property = $550,000 Selling Price = $530,000 Borrowed Money = $475,000 Invested = $75000
Q: 5. Yoda purchased a parcel of land three years ago for $35,000. In the current year, Count Dooku…
A: The answer is option (A.) [i.e, $45,000] Refer step 2 for explanation
Q: You have an HO policy with the following limits: A $75,000 (dwelling) B-S 7,500 (other structures)…
A: Characteristics of an HO policy have been provided. We have to find the amount insured will claim…
Q: Linda installed special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed…
A: Calculate the amount of deduction allowed:
Q: Deductible amount
A: Capital expenditure are not deductible. Since land is a Capital expenditure , So purchase of land is…
Q: Question: Calculate taxable capital gain on the sale of the House? Calculate taxable capital gain on…
A: A tax is a compulsory charge paid to the government by everyone who is generating any kind of…
Q: Mr. DEE has owned a modest triplex for a number of years, and all three units have been rented…
A: Standard Deduction:The term "standard deduction" refers to the piece of pay that is not subject to a…
Q: urchased a building for $250,000 for his business. Before beginning to use the property in , the…
A: Correct ans is D. $323000.
Q: Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and…
A: A policyholder makes a formal request to an insurance company for coverage or compensation for a…
Q: Christ owns a factory building that he has used in his business for many years. On 1/28/20, the…
A: Federal Income tax: Federal income tax is a tax on income and is imposed by the United State federal…
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- Glen Campbell owns a small office building adjacent to an airport. He acquired the property 10 years ago at a total cost of $608,000—that is, $70,000 for the land and $538,000 for the building. He has just received an offer from a realty company that wants to purchase the property; however, the property has been a good source of income over the years, and so Campbell is unsure whether he should keep it or sell it. His alternatives are as follows: a. Keep the property. Campbell's accountant has kept careful records of the income realized from the property over the past 10 years. These records indicate the following annual revenues and expenses: Campbell makes a $13,450 mortgage payment each year on the property. The mortgage will be paid off in eight more years. He has been depreciating the building by the straight-line method, assuming a salvage value of $80,700 for the building, which he still thinks is an appropriate figure. He feels sure that the building can be rented for another…Chuck sold a tractor to a dealer for $16,000. He bought the tractor for $25,500 several years ago and has claimed $12,000 of depreciation deduction on the tractor. What is the amount and character of his gain or loss from the sale of the tractor?Jared and Melissa are married. They have owned their primary residence for 10 years and have lived in it the entire time. They paid $350,000 for the house and land and it is now worth $ 900,000. Due to the property's prime location in Stephenville, the City of Stephenville has decided to "take" the property and turn it into a public park and venue. The City sends Jared and Melissa a letter offering to buy the property for $800,000. Jared and Melissa reject the offer and the case goes to trial where a judge determines the value to be $950,000 and orders the City to pay that amount for the property it claimed using eminent domain. After Jared and Melissa receive the $950,000, they decide not to buy a new house and instead they live in their camper and travel around the country. Do Jared and Melissa have to pay tax on the money they received? Be sure to fully explain your analysis.
- Last year, Jose and Josefina Munoz bought a home with a dwelling replacement value of $250,000 and insured it (via an HO-5 policy) for $225,000. The policy reimburses actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a new computer with a current replacement value of $1,500 and an estimated useful life of three years. They also took jewelry valued at $2,500 and a coin collection valued at $1,500. If the Munozs’ policy has a 90 percent co-insurance clause, do they have enough insurance? Assuming a 50 percent coverage C limit, calculate how much the Munoz family would receive if they filed a claim for the stolen items. What advice would you give the Munoz family about their homeowner’s coverage?Each of the following individuals purchased their property five years ago with the intention of using it as a vacation home. They have all rented out their property during periods when they could not get away. Which taxpayer has taxable income from renting their property in the current year? (a) Deborah. She used her beach cottage personally for 40 days and rented it to a friend for 13 days at fair rental value. (b) Lillian. She used her forest cabin personally for 10 days. She rented the property at fair rental value for 12 days using an online platform. She received a Form 1099-K, Payment Card and Third Party Network Transactions, reporting a gross payment amount of more than $600. (c) Kevin. He used his mountain lodge personally for 34 days and allowed his brother to stay there rent-free for 10 days. (d) Terrell. His lakefront condominium was not used for personal purposes at any time during the year. He rented the property to a co-worker at fair rental value for 18 days.Jes had a personal casualty loss in 20X1 due to a hurricane damaging his home. The area where his loss occurred was a declared federal disaster area. Jes’s 20X1 adjusted gross income was $ 200,000. • The fair market value of John’s home before the casualty was $ 450,000, the fair market value after the casualty was $ 275,000.• John purchased his home 6 years ago for $ 150,000 and made no capital improvements while he owned the house.• John received $ 110,000 from his insurance company due to this loss. How much will Jes deduct as a casualty loss in 20X1 if he itemizes his deductions? a. Zerob. $ 65,000c. $ 40,000d. $ 44,900e. $ 19,900
- A hurricane (federally declared disaster) destroyed the Palmer's boat. The couple purchased the boat for $30,000 ten years ago and it was appraised at a FMV of $35,000 before the hurricane. Unfortunately, the Palmers did not have insurance on their boat. Compute the Palmer's casualty loss deduction before applying the 10% AGI threshold? Question 35 Ms. Donor contributed $300.000 in cash to qualified charities this year during 2020. Her AGI was $275.000. How much is Ms. Donor's charitable contribution carry forward. if any. to 2021? (Ignore any temporary changes made to the charitable contribution rules for 2020 made by The Cares Act)In the current year, Brit had a federally declared disaster fire hit her house that damaged a couch and completely destroyed a bed and an antique table. She had no fire insurance. The couch cost $300, the bed $450, and the table $65. Just before the fire, the couch had a fair market value of $70, the bed had a value of $275, and the table had a value of $200. After the fire, the couch was worth $20. Brit's casualty loss before any dollar limitations is А. $815 В. $545 С. $390 D. $525The nephew of a well-known artist gave a costly artwork to an individual taxpayer. After two years, the taxpayer sold the artwork for a $400,000 profit. Long-term financial gains are what you'll be getting out of this.True \False
- -Betty is an unmarried attorney. During the year a hurricane completely destroys her home, which had a basis of $60,000. The value of her home before the tornado is $100,000 and the value afterwards is $35,000. Betty's home is located in a federally declared natural disaster area. Her AGI is $50,000. What is the amount that Betty can deduct after limitations? Group of answer choices $29,900. $54,900. $59,900. $65,000.BeBe had a tough year! She had two different unfortunate casualties during the year. First, her car was in an accident. Her car had a value of $20,000. Her basis (her cost) had been $30,000. After the accident, the value was reduced to only $10,000. Her insurance company reimbursed her for $3,000 only. Second, she had a separate free-standing storage she on her property, which burned down. The shed had a fair market value of $4,000, and a cost adjusted basis to BeBe of $3,500. Her insurance company reimbursed her $3,000 for her loss. If BeBe's adjusted gross income is $60,000, what is her deductible casualty loss, if any?Martha bought a home in 1988 at a cost of $100,000.00. She put 20% down and financed the remainder by way of a mortgage. She paid the mortgage off in 20 years. Over the years, she spent $45,000 improving and updating the house. Martha sold her home last year for $310,000.00 What was the value of Martha's equity in her home?
