Which of the following taxpayers would be most likely to benefit from an installment sale?
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Which of the following taxpayers would be most likely to benefit from an installment sale?
(a) Allan. He sold a business-use car at a net gain that was less than the amount of
(b) Kayla. She sold business-use land for a gain.
(c) Marie. She sold property she had held in inventory in her business at a net gain.
(d) Robert. He sold a fishing boat at a net loss.
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- Mandy and Theo exchange real property in a like-kind exchange. Mandy receives real property with a fair market value of $76,800 and transfers real property worth $53,760 (adjusted basis of $37,632) and cash of $23,040. What is Mandy's realized and recognized gain? If an amount is zero, enter "0". Mandy's realized gain is $ and her recognized gain is $During the current year, Ethel exchanges a business land for different business land in a like-kind exchange. Ethel's adjusted basis in the land given up is $7,000, and she receives a land worth $13,000 plus $3,000 cash. a. Calculate the amount of gain realized by Ethel on the exchange. b. Calculate the amount of the gain that must be recognized by Ethel on the transaction.Christine died owning an interest in a passive activity property. The property had an adjusted basis of $228,500, a fair market value of $237,000, and suspended losses of $15,425 . What can be deducted on her final income tax return?
- Sally owns real property for which the annual property taxes are $9,000. She sells the property to Kate on March 9, 2021, for $550,000. 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. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $ 1,500 X and Kate can deduct $ 7,500 X of the property taxes. Feedback 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 V by the $ 1,500 X she paid that is apportioned to Sally. Feedback c. What effect does the apportionment have on Sally's amount realized from the sale?You are Melina’s CPA, she to whom Walter “Buck” Swords left $50,000 and a used car in his will. What do you advise Melina as to her tax return – i.e., that she should report (include in her gross income) – both the $50,000 and the value of the car? the cash but not the car? the car but not the cash? neither the cash nor the car? What and why?If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a second residence, he or she can exclude (up to $250,000 for a single taxpayer): Multiple Choice The entire gain for any reason. A ratio of the days owned divided by 730 days for any reason. The entire gain on the second sale if the sale is due to health, employment reasons or unforeseen circumstances. A ratio of the days owned divided by 730 days and only if the sale is due to health, employment reasons or unforeseen circumstances.
- please answer within 30 all parts of the question.Constanza, who is single, sells her current personal residence (adjusted basis of $244,500) for $684,600. She has owned and lived in the house for 30 years. Her selling expenses are $34,230. What is Constanza's realized and recognized gain?Constanza's realized gain is $fill in the blank 1 and her recognized gain would be $fill in the blank 2.Frank's Mini Mart sold a piece of equipment on an installment agreement, to a competitor on the other side of town. The other owner failed to make the payments and Frank had to repossess the equipment. What is Frank's gain or loss on repossessed personal property with a fair market value of $12,000 on the date of repossession, where the seller's basis in the installment obligation at the time of repossession is $7,500, and the costs of repossession were $500? (a) Loss of $500. (b) Gain of $4,000. (c) Gain of $4,500 (d) Gain of $5,000.
- Sarah sold a business-use machine for $51,200. Sarah bought the machine for $53,800 several years ago and has claimed $11,900 of depreciation expense on the machine. What is the amount and character of Sarah's gain or loss? Multiple Choice $9,300 §1231 loss. $9,300 ordinary gain. $2,600 §1231 loss. $9,300 capital gain. None of the choices are correct.Marcus purchased Vinnie and Marie’s personal residence for $225,000 cash and the assumption of their $100,000 mortgage. Vinnie and Marie bought the house six years ago for $275,000 and have used it as a primary residence. What amount of gain should Vinnie and Marie recognize on the sale of their personal residence?! Required information [The following information applies to the questions displayed below.] Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as §1231 assets. The first is machinery and will generate a $20,500 §1231 loss on the sale. The second is land that will generate a $13,200 §1231 gain on the sale. Aruna's ordinary marginal tax rate is 32 percent. Note: Input all amounts as positive values. a. Assuming she sells both assets in December of year 1 (the current year), what effect will the sales have on Aruna's tax liability? Aruna's tax will by
