so sold an investment property for $310,000 in December 2022 and incurred agency fees of $75,000 on the disposal. The annual maintenance for the property is $40,000. She bought the property in August 2019 for $200,000. Tina had capital losses brought forward of $12,000. Her Capital gains for 2022

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Q: On December 30, 2020, Whitney sold a piece of property for $85,000. Her basis in the property was…

A: Instalment sales method is used to recognize revenue when income and expenses are not acknowledged…

Q: Ten years ago, PeeDee incurred a $400,000 mortgage to purchase his principal residence. Last year,…

A: When you buy home and after using many years you may sell home with some profit on that so in this…

Q: Emil purchased an apartment building in 2016 for $200, 000 and made improvements over time in the…

A: The objective of the question is to calculate the total gains on the building and improvements only,…

Q: Gilbert purchased a home for $200,000 in 2012. For the last ten years, he has owned and used the…

A: Long-term capital gain refers to the amount that is being earned from selling the qualifying asset…

Q: Umair sold some equipment he used in his business on August 29, 2022, that was originally purchased…

A: To calculate gain or loss on sale of the equipment, the book value of the same has to be arrived at…

Q: In May 2021, Cassie acquired a machine for $30,000 to use in her business. The machine is classified…

A: SOLUTION- MACRS RATES (5 YEAR RATES ) : YEAR 1 =20% .

Q: Louis owned a piece of land which he purchased in 2018 for $175,000. In 2023 he sold the land to his…

A: The objective of the question is to calculate the gain or loss recognized by Louis on the sale of…

Q: Tom sold a capital property on December 31, 2021 for $300,000. $280,000 is payable on December 31,…

A: A capital gain seems to be an increase within the worth of a capital asset that is realized whenever…

Q: In 2020, Matt and Rhonda had a capital gain of $6,000 from the sale of stock. They also sold a piece…

A: Capital Gain and Capital Loss: In straightforward terms, the distinction between the selling cost…

Q: In October 2019, Old MacDonald sold some farm cottages for $90,000 and incurred legal fees of…

A: Capital gain is a one-time profit earn on the sale of fixed assets.

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A: INTRODUCTION: Depreciation is the process of deducting the cost of a corporate asset over time…

Q: After 3 years, Ka Leony sold a painting (capital asset) which he purchased in 2018 at a cost of…

A: Total sale price = 1000+1000+2000+4000+4000 =12000

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A: When an individual sells an asset at a price greater than the purchase price of the asset, then…

Q: Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,800 on January 15, 2017. On December…

A: In wash sale, no loss is recognized at the time of the sale.

Q: David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his debts.…

A: Given : David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his…

Q: On January 5, 2022, Amin sells his principal residence with an adjusted basis of $270,000 for…

A: When a residential property is sold tax on the gain realized is paid. Any commission or legal fees…

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A: Answer:-  Income meaning:- Individuals and businesses get money, property, and other transfers of…

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A: Solution- Step(1)-Alphonos purchased office building in 2010=$60000Machinery in september of…

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A: Answer:- Capital gain or loss:- It is the difference between an asset's original purchase price and…

Q: Taxpayer T built

A: A recognized gain is the profit you make from selling an asset. Recognized gains are different…

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A: Solution:-Steve Drake plans to sell the rental house on January 1, 2022. The query involves various…

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Q: Sara Nade had 2021 capital asset transactions as noted below. Determine the amount of her gain or…

A: Capital Gain / Losses Calculate the Capital Gain / Loss of the transaction which incurred whether…

Q: Tina disposed of a painting on 1 July 2020 for $500,000 which she had bought in February 2008  for…

A: Capital Gains are gains arising from sale asset when proceeds from such sale are compared with the…

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A: Assuming the depreciation on machinery is calculated on SLM basis Depreciation of each year…

Q: 29. Tina disposed of a painting on 1 July 2022 for $600,000 which she had bought February 2018 for…

A: The capital gains and capital loss are the loss or gain on the property and assets held for a…

Q: Tina disposed of a painting on 1 July 2022 for $600,000 which she had bought February 2018 for…

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A: When you sell a financial item (such as stocks, real estate, or other assets) for more money than…

Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…

A: In the above question we have to calculate Adjusted Gross Income for 2018 for Alphonso with the help…

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Q: In 2019, Clem and Chloe, a married couple, sold their principal residence that they have owned and…

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Q: During 2018, William purchases the following capital assets for use in his catering business: New…

A: Depreciation refers to the method of accounting for allocating cost of tangible or physical asset…

Q: A taxpayer purchased land in 2010 for $92,000 and sold it in 2022 for $84,000 cash. The buyer also…

A: The objective of this question is to calculate the gain or loss on the sale of the land. The gain or…

Q: Ibrahim purchased a house in 2019 and rented it out the entire time he owned it. His adjusted basis…

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A: Amount of the realized gain or loss on the sale = selling price + Mortgage value -purchase price

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A: Alphonso Purchased  Office building in 2010 = $650000 Machinery in September of 2015 = $60000 In…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.