Answered: residence

Business

Accounting

residence

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 86P

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#2) Mr. Norman Low owns a piece of land. It has a cost of $125,000 and a fair market value of $132,000. In July, 2017, Mr. Low sells the asset to his father for $150,000 and his father sells it a month later for $132,000. REQUIRED: Determine the amount of income to be recorded by Mr. Low as a result of the sale to his father. Determine the amount of income to be recorded by Mr. Low’s father as a result of the sale of the land.
Kk301.
Franco converted a building from personal to business use in May 2018 when the fair market value was $27,500. He purchased the building in July 2015 for $44,000. On December 15 of this year, Franco sells the building for $22,000. On the date of sale, the accumulated depreciation on the building is $2,815. What is Franco's recognized gain or loss on the sale?
jacob lived in his house as his house as his primary residencefrom 2018, when purchased for 175,000.the assessment at that time showed the land value 15,000. he made no improvements while he lived there, and in 2021 he converted the proprty to rental use. in early 2022 he spent 15,000 on a kitchen renovation before selling it in december of 2022. what is jacobs adjusted basis in the house before any allowable depreciation when he sold it? 160,000 173717 175000 190000
In 2018, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2021, when the fair market value of the house was $400,000, he converted the house to rental property. a. José's basis for cost recovery for the property is $300,000. b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it is subject to the mid-month convention. c. The cost recovery for 2021 is _____ ? Please answer C !
Holly purchased a house in 1999 for $390,000 (of which $40,000 is for the land). In April 2019 she decided to relocate to another state. She did not sell her house and converted the property into a rental property. The fair market value at the time of the conversion was $450,000 (of which $80,000 is for the land). Required: Calculate the depreciation expense for 2020.
Godo Farhana purchased a new stove for $600 and placed it in service in her rental house in June 2018. No special depreciation allowance was claimed. Farhana sold the rental house, including the stove, in October 2021. Her adjusted basis including depreciation on the stove at the time of sale was $139. The stove was included in the sale, but the statement specified a price of $375, leaving a $236 gain. Under what section of the Internal Revenue Code will that gain fall?
Ibrahim purchased a house in 2019 and rented it out the entire time he owned it. His adjusted basis in the property before depreciation is $274,500($41,500 attributable to land). In 2021, Ibrahim sold the property for $320,000 with $7,500 in deductible expenses. The total depreciation claimable was $17,093. What is Ibrahim's taxable gain on the disposition of the building?
13. B purchased two parcels of land in 2016 for $50,000 each. Parcel 1 was purchased to hold until its value increased and then offered for sale. Parcel 2 was purchased to build a rental property and collect rents over time. In 2022 parcel 1 was sold for $40,000 and parcel 2 was sold for $100,000 as part of the rental property sale. Determine the amount that B’s net income for tax purposes will increase in 2022.
Marcus sold a residential rental building for a gain of $30,000. He had originally purchased the building and placed it in service in March 2016 (for simplicity, the sale of land is not included in this question). The amount of depreciation allowed or allowable was $14,250. There were no other adjustments to the basis of the property, and Marcus did not sell any other property during the tax year. What is the amount and nature of Marcus's gain? (a) $15,750 gain taxed as a long-term capital gain, and $14,250 gain taxed at a maximum of 25%. (b) $15,750 gain taxed as a long-term capital gain, and $14,250 gain added to business income. (c) $30,000 gain taxed as a long-term capital gain, and $14,250 gain taxed at a maximum of 25%. (d) $30,000 gain taxed as a long-term capital gain, and $14,250 gain added to business income.
In 2018, José purchased a house for $263,000. He used the house as his personal residence. In May 2021, when the fair market value of the house was $346,900, he converted the house to rental property. what is the cost recovery for 2021?
Gilbert purchased a home for $200,000 in 2012. For the last ten years, he has owned and used the home as his principal residence. On July 17, 2022, Gilbert sold the home for $500,000. His real estate commission and other selling expenses were $20,000. What is the amount and character of the recognized gain or loss from the sale on July 17, 2022? O a. $280.000 long-term capital gain Ob. $70,000 long-term capital gain No gain or loss d. $30,000 long-term capital gain $300,000 long-term capital gain DC. e.