Tom sold a capital property on December 31, 2021 for $300,000. $280,000 is payable on December 31, 2023, and the balance was paid immediately in cash. The adjusted cost base of the property was $170,000 and the selling costs totaled $10,000. Which one of the following amounts represents the minimum taxable capital gain in 2021? $40,000. $70,000. $12,000 $24,000.

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: 5. Mark Corp. has taxable income of $10,000,000. They purchase $1,100,000 of qualified personal…

A: Section 179:-It is a US Revenue Code is an immediate business expense deduction from the assets one…

Q: During the current year, TLI Corporation sells a tract of land for $90,000. The sale is made to…

A: In this question, we will determine the amount of loss or gain under different circumstances by…

Q: In year 1, Aldo sold investment land with a $100,000 tax basis for $95,000. Payment consisted of…

A: Recognized loss refers to the loss an entity recognizes when the asset's selling price is less than…

Q: Harvey Caseman died on July 15, 2020. At the time of his death, he owned the following assets: Cost…

A: Taxes are paid strictly for the taxable event.

Q: Sunland Company expects to produce 58,000 units of product XLA during the current year. Budgeted…

A: A flexible budget is a financial plan that offers projections of income, costs, and profitability at…

Q: Liabilities Liquid assets Monthly credit payments Monthly savings $ 8, 000 $ 5,000 $4668 $ 150 Net…

A: Formula: Debt ratio = Liabilities / Net worth

Q: Determine her total cost recovery deduction.

A: $100000/$276,000 = 36.23%. Therefore, Audra must use the mid-quarter convention. As acquisitions…

Q: 2020. The corporation’s depreciation for the building for 2020 will be approximately:

A:

Q: Anderson disposes a vacant lot for P3,000,000.  The lot has an Assessor's fair value of P2,800,000,…

A: What is the basis in the valuation of real property?  The value of the real property will be based…

Q: ential house and lot located in Manila on January 5, 2018 for 8,000,000. The property was purchased…

A: Capital Gain - A capital gain is a rise in the value of a capital asset that is realized upon the…

Q: I sol my property for $5,000,000. I purchased the property for $4,900,000 with partial sale of…

A: To calculate your adjusted basis, you need to start with the original purchase price and add any…

Q: In 2022, Firm L purchased machinery costing $21,300 and elected to expense the entire cost under…

A: Section 179 allows business's to deduct the expense of qualified asset in the first year of use for…

Q: Garcia disposed of his principal residence for P2,000,000 and immediately acquired a new one for…

A: In Phillipines capital gain tax is charged at 6% on the sale value or…

Q: Required information [The following information applies to the questions displayed below.] For 2023,…

A: When expenses exceed income, a loss occurs. This might happen for a single transaction in business…

Q: A business sells real property for $950,000, with $600,000 of this amount being allocated to the…

A: A capital asset generates a gain when it is sold or otherwise disposed of for more money than it…

Q: Wayne Co. buys land for $145,000 in 2021. As of 3/31/22, the land has appreciated in value to…

A: Cost concept is the important concept to maintain the Assets accounts  of the organization.…

Q: The equipment acquired on Oct. 2021 was sold on Apr. 2022. How much is the creditable input vat on…

A: Input VAT refers to the Value-Added Tax (VAT) paid by a business on the purchase of goods or…

Q: Sun Ltd., with a taxation year that ends on December 31 and has a Class 8 UCC balance on January 1,…

A: CCA stands for Capital Cost Allowance. It is a tax deduction that can be claimed annually on…

Q: D sold capital property in the current year for net proceeds of $700,000. The property has an…

A: A capital asset is an item that you own for investment or personal purposes, such as stocks, bonds…

Q: Nena invested real property in the year 2017 amounting to P 2,000,000. In 2018, the value of the…

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

Q: Littman LLC placed in service on July 29, 2022, machinery and equipment (seven-year property) with a…

A: The Modified Accelerated Cost Recovery System (MACRS) is a depreciation system used for tax purpose…

Q: D sold capital property in the current year for net proceeds of $800,000. The property has an…

A: Capital gain means the gain arises from the transfer of the capital asset or increase in the price…

Q: On July 1, 2022, Pepperpot Company made a lump sum purchase of an office building, including the…

A: Date Particulars  Debit Credit  .. Land $48,000     Building $168,000     Fixtures $24,000…

Q: In February 2021, Pietra acquired a new automobile for $82,000 and used the automobile 80% for…

A: When a business uses an automobile, it follows some rules allowable for depreciation deduction. The…

Q: On October 1, 2023, Verónica purchased a business. Of the purchase price, $66,000 is allocated to a…

A: Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…

Q: On October 1, you purchased a residential home in which lo locale your professional office for…

A: The given information: Price of the building is $150,000. Price of the land is $30,000.

Q: On June 15, 2020, Allen sold land held for investment to Stan for $68,000 and an installment note of…

A: Under the installment method, the gain is recognized on the basis of the amount received in a year.…

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: Would you please explain how to find the minimum taxable capital gain to be reported in Year 2?…

A: CAPITAL ASSETS :- A capital asset is an item that you own for investment or personal purposes, such…

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

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Boot Realty LLC receives cash of $75,000 upon completing a Section 1031 exchange. The cash received…

A: As per section 1031, investors in business properties can delay their taxable gain on property sold…

Q: Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction…

A: The rate of depreciation will be 3.636% on the total value of the asset on the straight-line method.…

Q: 15. On December 15, 2023, Mr. Carino sold a 500 square meter residential condominium The unit was…

A: To calculate the capital gains tax on the sale of the residential condominium unit, you can use the…

Q: Lars acquired a new network

A: The maximum amount you can elect to deduct for most section 179 property you placed in service…

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.