Hi expert please give me answer general accounting question Sid's home was destroyed by fire. He hadpurchased the home 18 months ago for $950,000.He received $1,300,000 from his insurancecompany to replace the home. If he fails torebuild the home or acquire a replacement homein the required time, how much gain must herecognize on this conversion?a. $350,000b. $162,500c. $100,000d. $0e. None of the above

Step 1: Definition of GainGain is the difference between the proceeds received from a transaction…

Answered: Sid's home was destroyed by fire. He…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter1: The Individual Income Tax Return

Section: Chapter Questions

Problem 20MCQ

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Similar questions

Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His insurance company pays him $140,000 and he immediately invests in a new building at a cost of $142,000. What is the amount of recognized gain or loss on the destruction of Oscar's building? $0 $10,000 gain $8,000 gain $12,000 gain $2,000 loss
John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $850 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations? $200 $875 $2,500 $3,200 $0
Brad sold a rental house that he owned for $247,000. Brad bought the rental house five years ago for $228,000 and has claimed $48,500 of depreciation expense. What is the amount and character of Brad's gain or loss? Multiple Choice ___ $18,000 ordinary and $48,250 unrecaptured 1250 gain. ___ $18,000 1231 gain and $48,250 unrecaptured 1250 gain. ___ $66,250 ordinary gain. ___ $66,250 capital gain. ___ None of the choices are correct.
Lucy has AGI of $125,000 before considering losses from some rental real estate she owns (she actively participates): She had the following losses from her rental property: Rental property i Rental property 2 Required: 5. How much of the 183363 can Lucy deduet? can b. If Lucy's AGI before the losses was $90,000, how much of the losses can she deduct? - Complete this question By EREEFing your answers in the tabs below: An Required A Required B Rental property Property 1 Properly 2 $ (26;000) (10,000) How much of the losses can Lucy deduct? Note: Do not round intermediate calculations and round your final answers to nearest whole dollar a Do not rou Note: Do not found intermediate alculations and to your war auswers wat Suspended losses 69 €9 $ $ Answer is complete but not entirely correct. Allowed losses 10,833 X $ 4,167 $ 15,167 X 5,833
Hello. I'm stuck on this problem please help.
Greg Grotto exchanged an eight-unit apartment building for a four-unit apartment building. His adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building he received, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction. How much gain does Greg need to recognize? a. $120,000 b. $80,000 c. $48,000 d. $40,000 e. $0 Please do not give solution and formulae in image format.. thanku
M.14.
Harry Hanover bought a small rental apartment house several years ago for $120,000. Since then, he has had to put on a new roof, at a cost of $6,000. Apart from this, Harry has spent $4,000 on maintenance of the property and claimed $8,000 in depreciation. Which of the following is Harry's current adjusted basis in the property? O $116,000, $118,000. O$120,000. O $122,000.
basis of his Bob exchanged a building for another building on April 3, 2023. The adjusted building was $320,000. He also gave $50,000 cash. He received a building with a fair market value of $450,000. How much gain or loss must he recognize on the exchange? $80,000 gain $0 $50,000 loss $50,000 gain I Liana Amiri, single and no dependents has the following transactions in 2023: Long term capital gain $22,000 Long term capital loss Short term capital gain Short term capital loss (8,000) 19,000 (23,000)
Hello, Can you help me with the below question? Three years ago, Louise bought a rental house for $450,000. Last year, she built a small addition for $50,000. In 2021, she decides to sell the house. She has taken depreciation of $21,000. What is Louise's adjusted basis? a.$450,000 b.$429,000 c.$500,000 d.$479,000
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