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On March 10, 2019, Elizabeth, a college professor, purchased a house for $300,000. She did not move into the house until August 8, 2019. On August 1, 2020, she accepted a po-sition as a visiting professor at Hogwatts University for one year and moved to Liverpool where she rented an apartment. While away at Hogwatts, two of her former students lived in the house but did not pay rent. She returned to the house on August 1, 2021, and lived in the house until July 15, 2022, when she sold the house for $500,000. The realtor’s commission was $35,000. Determine her recognized gain.
Elizabeth purchased house on Mar 10, 2019 and sold it on July 15 , 2022 . So she sold it after holding the capital asset for more than a 3 years period and hence the gain will be recognised as capital gain as per IRS rules. The calculation of capital gain is as under ----
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Will any of the gain be excluded under Section 121?
by Bartleby Expert- Chloe’s 4 year old grandson, Marcus, has been living with her since his parents were incarcerated in August 2019. Chloe provided all the support for Marcus and all the costs of keeping up their home in 2022. Marcus' parents had no income for 2022 and will not claim Marcus. Chloe worked full time and earned $53,000. She received no other income in 2022. Marcus attends daycare while Chloe works. Chloe received a statement from the daycare provider showing she paid $5,980 for Marcus’ care for the year. She did not pay any 2021 expenses in 2022. Chloe and Marcus are both U.S. citizens, lived in the United States all year, and have valid Social Security numbers. No one else lives in the household with them. 4. How much is Chloe's combined child tax credit/additional child tax credit (CTC/ACTC)? $____________Please post the step by step solutionErin is the landlord of a single-family home, which she leased to Carlos in February 2022. Prior to moving in, Carlos paid $1,000 for the first month's rent and an additional $1,000 for the last month's rent (for a total of $2,000 advance rent). He then paid $10,000 in rent during the remainder of the tax year. What amount does Erin include in gross rental income for this property in 2022?Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,080 670 4,650 1,320 1,180 1,130 10,500 During the year, Tamar rented out the condo for 96 days, receiving $26,500 of gross income. She personally used the condo for 44 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering…
- I already tried 5,980, but its incorrect Interview Notes Chloe, age 48, divorced her husband in 2017. Chloe's 4 year old grandson, Marcus, has been living with her since his parents were incarcerated in August 2019. Chloe provided all the support for Marcus and all the costs of keeping up their home in 2022. Marcus' parents had no income for 2022 and will not claim Marcus. Chloe worked full time and earned $53,000. She received no other income in 2022. Marcus attends daycare while Chloe works. Chloe received a statement from the daycare provider showing she paid $5,980 for Marcus' care for the year. She did not pay any 2021 expenses in 2022. Chloe and Marcus are both U.S. citizens, lived in the United States all year, and have valid Social Security numbers. No one else lives in the household with them. 5. What amount can Chloe claim as qualified dependent care expenses on Form 2441? I $3,000 b. $5,980 c. $6,000 d. $8,000Peter moved from Manitoba to Nova Scotia in 2020, as a result of a promotion by his employer to open a new branch. When he sold his house in Manitoba he incurred a loss of $100,000 on the sale. Peter's employer decided to reimburse him for the housing loss of $100,000 in 2020. Which of the following amounts represent the increase to Peter's employment income in 2020 as a result of this reimbursement? (Show Calculations) (a) No change to employment income (b) $42,500 added to employment income (c) $15,000 added to employment income (d) $100,000 added to employment incomeWesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2021, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2021. The closing statement showed the following disbursements: Real estate agent's commission $21,780 Appraisal fee 600 Exterminator's certificate 300 Recording fees 800 Mortgage to First Bank 305,000 Cash to seller 34,520 Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2021, Wesley purchases another residence for $325,000. If an amount is zero, enter "0". a. Calculate Wesley's recognized gain on the sale. b. What is Wesley's adjusted basis for the new residence? c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?…
- Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses inconnection with her condo:Insurance $ 2,000Mortgage interest 6,500Property taxes 2,000Repairs & maintenance 1,400Utilities 2,500Depreciation 14,500 During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personalpurposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unlessotherwise specified, Alexa has no sources of passive income.Assume Alexa receives $30,000 in gross rental receipts. a. What effect do the expenses associated with the property have on her AGI?b. What effect do the expenses associated with the property have on her itemized deductions?Jane Doe moved from Victoria to Vancouver for an internal transfer requested by her employer on October 1, 2020. Prior to relocation, she spent $1000 on a house hunting trip to Vancouver and ended up signing a one-year lease for an apartment in Vancouver after an unsuccessful bid for a house. The cost of sales of her old residence in Victoria, including legal fees and brokerage fees, totaled $7,200. The actual moving costs were $13,000. Jane’s employer agreed to pay $8,000 for her moving costs. Jane’s salary for 2020 was $48,000 (assume her monthly salary is the same throughout the year). Required: Calculate Jane’s maximum moving expense deduction for 2020. Please also indicate the carry forward amount, if any.Jeff is a single taxpayer who sold his home when he was transferred from NY to Denver by hisemployer. He purchased the home on January 10, 2013. He was sent by his company for temporaryassignment to Detroit on February 1, 2016, that lasted for longer and was gone for 16 months in2016 and 2017, during which time he rented out his home. He moved back into the home on June 3,2017. He sold the home on March 15, 2020. Jeff can claim an exclusion of gain on the sale up to:Select one:a. $500,000b. $300,000c. $250,000d. $0
- Lilly works for ACME Inc. in Memphis, Tennessee. She is single and owns her own home. ACME promoted Lilly to a new position that required her to move to Seattle, Washington in July 2022. She decided to rent out her Tennessee residence and found a tenant that took possession on August 1, 2022. The property was rented out at fair rental value. Lily’s total mortgage interest for the entire tax year is $3,000 and property taxes were $900. How much of Lilly’s mortgage interest and property taxes should be reported on her Schedule E?Skip rented an office building to Chris for $1,000 per month. On December 29, 2018, Skip received a deposit of $7,000 in addition to the first and last months' rent. Occupancy began on January 2, 2019. On July 15, 2019, Chrisclosed his business and filed for bankruptcy. Skip had collected rent for February, March, and April on the first of each month. Skip had received May rent on May 10, but collected no payments afterwards. Skip withheld $1,000 from the deposit because of damage to the property and $500 for unpaid rent. He refunded the balance of the deposit to Chris. Requirement What amount would Skip report as gross income for2018? for 2019? Begin by selecting the labels to show the items that will comprise Skip's 2018 gross income, and then enter the amounts to compute the 2018 gross income amount. (If an input field is not used, leave the input field(s) empty; do not select a label or enter a zero.) Taxable item 2018 Gross income…The Lyns live in their own home at 40 Cavin Ave, on which they have a mortgage balance of $2,000,000. This property has been appraised at $8,500,000 and is now up for sale at its current market value. A purchaser has been identified but the proceeds from the sale is not due to be paid to the Lyns until November30, 2020. In the meantime the Lyns have contracted to purchase a new home at Wex Haven for $17,000, 000, although this property is valued at only $16,000,000. The sale agreement on this property requires a deposit of 20% on signing which will take place on June 1, 2020, with the balance which will not be covered by a mortgage, payable in 30 days after signing. Based on their high salaries, North Caribbean Building Society have pre-approved the Lyns for a 25-year mortgage of 75% of purchase price or value, whichever is less, up to a maximum of $20,000,000. This will attract an interest rate of 5.50% per annum with monthly compounding and will be disbursed on September 30,…
