Taxpayer T built
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Taxpayer T built a house using materials which cost T $100,000. Immediately upon completion in 2020, the house was appraised at $250,000 fair market value. T immediately gifted the house to T's son S. S lived in the house for 2 years and in 2022, S exchanged the house for shares of Exxon Mobil stock worth $200,000. S sold the Exxon stock for $210,000 cash in 2023. Which of the following is a correct statement?
a. T will recognize a gain of $150,000 in 2020
b. S will recognize a gain of $10,000 in 2023
c. S will not recognize gain or loss upon the exchange in 2022
d. S will recognize a loss of $50,000 in 2022
e. None of a through d is correct
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- Morrissey donated stock (a capital asset) to a public charity. He purchased the stock three years ago for $100,000. On the date of the gift, the stock had a fair market value of $200,000. What is Morrissey's maximum charitable contribution deduction for the year related to this stock if his AGI is $500,000? Select one: O A $250,000 OB. $150,000 OC. $100,000 OD. $200,000In 2020, Martin and Rebecca formed White Corporation. Martin transfers real estate with an adjusted basis of $260,000 and a fair market value of $350,000 to the newly formed White Corporation in exchange for 75% of the common stock of White Corporation. The real estate was encumbered by a mortgage of $275,000 which White Corporation assumed. Rebecca contributed equipment with a fair market value of $35,000 and an adjusted basis of $15,000 in exchange for 25% of the common stock and a $10,000 bond. What is the amount of gain or loss realized and recognized by Martin on the transfer of the real estate? What basis does Martin take in White Corporation stock? What basis does White Corporation take in the real estate contributed by Martin? What is the amount of gain or loss realized and recognized by Rebecca on the transfer of the equipment? What basis does Rebecca take in White Corporation stock? What basis does White Corporation take in the equipment contributed by Rebecca?LO.8 During 2022, Chester (a married taxpayer filing a joint return) had the following transactions involving capital assets: Gain on the sale of an arrowhead collection (acquired as an investment at different times but all pieces have been held for more than 1 year) Loss on the sale of IBM Corporation stock (purchased 11 months ago as an investment) Gain on the sale of a city lot (acquired 5 years ago as an investment) 4 How much income tax results from these capital asset transactions if: a. Chester has taxable income of $378,400? b. Chester has taxable income of $74,125? $ 6,000 (3,500) 2,000
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- After paying the corresponding estate tax, Nicanor inherited a house and lot from his father valued at Php 5,000,000 on February 14, 2018. At the time of his father’s death, the property is mortgaged in the amount of Php 1,000,000. On October 6, 2021, Nicanor died. The details of Nicanor’s estate are reflected below: Real properties and personal properties personally owned by Nicanor – Php 5,000,000 House and lot Nicanor inherited from his father: BIR Zonal value – Php 3,000,000 Value per Tax Declaration: Land – Php 2,000,000 House – Php 4,000,000 The following are expenses / deductions paid/payable attributable to the estate at the time of his death: Outstanding balance of the mortgage on his father’s property – Php 400,000 Unpaid mortgage on Nicanor’s properties – Php 500,000 Losses – Php 500,000 Total unpaid taxes – Php 100,000 Claims by hospitals on unpaid medical bills – Php 500,000 Donation to the City Government for Public Use – Php 500,000 How much is the total…Mr and Mrs. Swerte made the following donations during the calendar year 2018 (common property unless otherwise stated): Date Donations January 15 To Fe, legitimate daughter, on account of her forthcoming marriage, 10,000 shares which are not traded in the stock exchange. The book value at the time of donation was P52 per share. To Juana, family friend of couple, on account of her birthday, P20,000. February 10 To Pilar, legitimate daughter, on account of her marriage on February 1, 2015, a piece of antique jewelry from the capital property of Mr. Swerte. The pawn value of the jewelry was P45,000. To Ernest, legitimate son, on account of her graduation, a piece of land costing P500,000. The fair market value per BIR at the time of adoption was P1,000,000. Its zonal value was P1,200,000. The piece of land had an unpaid mortgage of P100,000 which was assumed by the donee. To Lilian, Mrs Swerte's sister; on account of her forthcoming marriage, cash P150,000 September 4 To CPAR University,…Greta had the following transaction in 2021: a. Carl sold a building in 2021 and generated a $3,000 unrecaptured 1250 gain and a $6,000 LT capital gain. b. Carl sold some old postage stamps he had been collecting since he was a kid at a gain of $5,000. c. Stock purchased on 4/15/21 for $4,000 and sold 11/2/21 for $1,000. d. He sold a potato washing machine that he had used in his business for an ordinary loss of $2,000 e. He sold a personal auto for a long-term loss of $1,000. f. He sold bonds that he purchased back in 2018 for a loss of $10,000. What is the net capital gain or loss and its character?
- In 2020, Marshall sold a residential house and lot located in Cotabato forP10,000,000 to his friend. He acquired it at P5,000,000 back in 2016. The FMV atthe time of sale is P15,000,000 while the Zonal Value is P13,000,000. The tax onthe above transaction is A.P 900,000 Capital gains taxB.P 780,000 Capital gains taxC.P1,450,000 Basic Income TaxD.None of the aboveIn 2019/20, a taxpayer sold a parcel of shares for $127,000 which she acquired in November 1999 as a long term investment for $110,000. She was delighted to profit on the sale of her jetski for $15,000 which she had purchased for $9,000 in June 2017.. She sold her car for $20,000 that she had purchase for $30,000 in July 2016. She has an unapplied prior year capital losses of $7,000 that was made on a sale of collectables and $10,000 of unapplied net prior year capital losses on the sale of land. What is the taxpayer's net capital gain or loss for the income year? Select one: a. Capital Gain $17,000 b. Capital gain $3,500 c. Capital gain, $11,500 d. Capital Gain $7,000 e. Capital gain $1,500
