Sally owns real property for which the annual property taxes are $19,280. She sells the property to Kate on April 2, 2021, for $964,000. Kate pays the real property taxes for the entire year on October 1, 2021. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. Question Content Area a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $fill in the blank and Kate can deduct $fill in the blank of the property taxes. b. What effect does the property tax apportionment have on Kate's adjusted basis in the property? Kate's adjusted basis for the property is increased by the $fill in the blank she paid that is apportioned to Sall
Sally owns real property for which the annual property taxes are $19,280. She sells the property to Kate on April 2, 2021, for $964,000. Kate pays the real property taxes for the entire year on October 1, 2021.
Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar.
Question Content Area
a. How much of the property taxes can be deducted by Sally and how much by Kate?
Sally can deduct $fill in the blank and Kate can deduct $fill in the blank of the property taxes.
b. What effect does the property tax apportionment have on Kate's adjusted basis in the property?
Kate's adjusted basis for the property is increased by the $fill in the blank she paid that is apportioned to Sally.
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