Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 14, Problem 26CE
To determine
Indicate Person A’s gain basis and loss basis.
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Luciana, a nonshareholder, purchases a condominium from her employer for $85,000. The fair market value of the condominium is $120,000. What is Luciana's basis in the condominium and the amount of any income as a result of this purchase?
Luciana's basis in the condominium is $_____ and she reports $______as ____.
.
Michaela owns a principal residence in Georgia, a townhouse in San Francisco, and a yacht in Cape Cod. All of the properties have
mortgages on which Michaela pays interest.
a. For which residences can Michaela deduct mortgage interest?
Principal residence plus one of the two other residences
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Qualified residence interest is interest paid or accrued during the taxable year on indebtedness (subject to limitations) secured by any property
that is a qualified residence of the taxpayer.
b. What are the limitations on Michaela's mortgage interest deduction? What strategy should Michaela consider to maximize her mortgage
interest deduction?
Michaela's deduction is limited to interest on acquisition indebtedness up to $1,000,000
or $
highest
if the debt existed at December 15, 2017
100,000 X if incurred after that date. Therefore, she should choose the second residence that will result in the
interest deduction.
Joyce is a widowed taxpayer whose husband Willard passed away on March 31, 2020. Joyce and Willard had purchased a home for
$215,000 on September 12, 2004, lived in the home as their main home until Willard's death. Joyce moved in with her daughter after
Willard's death, and sold the home on November 30, 2020 , for $595,000. How much of the gain on the sale can Joyce exclude from
taxable income?
Select one:
O a. $500,000, the maximum exclusion for an unmarried surviving spouse
O b. $380,000, the amount of gain on the sale of the home
O C. $250,000, the maximum exclusion amount for a single taxpayer
O d. $0, because she moved out before she sold the home
Chapter 14 Solutions
Individual Income Taxes
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - LO.1 Taylor is negotiating to buy some land. Under...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - LO.4 Marilyn owns land that she acquired three...Ch. 14 - Prob. 15DQCh. 14 - Prob. 16CECh. 14 - Prob. 17CECh. 14 - Prob. 18CECh. 14 - Prob. 19CECh. 14 - Prob. 20CECh. 14 - Heather owns 400 shares of Diego Corporation...Ch. 14 - Prob. 22CECh. 14 - Prob. 23CECh. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - Prob. 27CECh. 14 - LO.1 Anne sold her home for 290,000 in 2019....Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Nissa owns a building (adjusted basis of 600,000...Ch. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Yancys personal residence is condemned as part of...Ch. 14 - Prob. 37PCh. 14 - Prob. 38PCh. 14 - Kevin purchases 1,000 shares of Bluebird...Ch. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Nicky receives a car from Sam as a gift. Sam paid...Ch. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Helene and Pauline are twin sisters who live in...Ch. 14 - Prob. 50PCh. 14 - Prob. 51PCh. 14 - Prob. 52PCh. 14 - Prob. 53PCh. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - Prob. 56PCh. 14 - Alton Newman, age 67, is married and files a joint...Ch. 14 - John Benson, age 40, is single. His Social...Ch. 14 - Prob. 1RPCh. 14 - Prob. 2RPCh. 14 - Prob. 5RPCh. 14 - Prob. 1CPACh. 14 - Prob. 2CPACh. 14 - Prob. 3CPACh. 14 - Prob. 4CPACh. 14 - Prob. 5CPACh. 14 - Prob. 6CPACh. 14 - Prob. 7CPACh. 14 - Prob. 8CPACh. 14 - Prob. 9CPA
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