South-western Federal Taxation 2018: Individual Income Taxes
41st Edition
ISBN: 9781337385886
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 14, Problem 28P
To determine
Calculate the amount of realized gain of Person A.
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Anne sold her home for $290,000 in 2021. Selling expenses were $17,400. She purchased it in 2015 for $200,000. During the period of ownership, Anne had done
the following:
• Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.)
• Deducted a casualty loss in 2017 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000
(after the $100 floor and the 10%-of-AGI floor), and Anne's insurance company reimbursed her for $13,500. (Refer to text Section 7-3.)
• Paid street paving assessment of $7,000 and added sidewalks for $8,000.
• Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer to text Section 10-1b.)
What is the amount that Anne realized on the sale?
What is the adjusted basis of Anne's home?
Anne's realized gain on the sale is $ ?
Rebecca Botson purchased a personal residence for $286,000. It had a fair market value of $300,000 in the current year when it was damaged by a flood that resulted in the entire area being declared a federal disaster area. The fair market value after the flood was $240,000 and insurance proceeds totaled $15,000. What is the net amount of federal casualty loss she can claim if her adjusted gross income is $120,000?
Aleesia purchased a rental property in April 2017. Her basis for depreciation was $210,000. She has no adjustments to her
basis. After preparing her own taxes for five years, she went to a paid preparer for her 2021 return. The preparer realized
Aleesia had not claimed depreciation any of the previous years. She was allowed to claim $5,409 for 2016, and $7,636 each
year for 2017, 2018, 2019, 2020, and 2021.
210,000
How much catch-up depreciation can Aleesia claim on her 2021 Form 3115?
$22,908
$28,317
$35,953
$43,589
5,409
7,636
Chapter 14 Solutions
South-western Federal Taxation 2018: 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 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 35PCh. 14 - Yancys personal residence is condemned as part of...Ch. 14 - Prob. 41PCh. 14 - Nicky receives a car from Sam as a gift. Sam paid...Ch. 14 - Prob. 44PCh. 14 - Prob. 46PCh. 14 - Prob. 47PCh. 14 - Prob. 50PCh. 14 - Prob. 51PCh. 14 - Prob. 52PCh. 14 - On December 28, 2018, Kramer sells 150 shares of...Ch. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - Prob. 56PCh. 14 - Alton Newman, age 67, is married and files a joint...Ch. 14 - Prob. 58CPCh. 14 - Prob. 1RPCh. 14 - Prob. 2RPCh. 14 - Prob. 3RPCh. 14 - Prob. 1CPACh. 14 - Prob. 2CPACh. 14 - Prob. 3CPACh. 14 - Prob. 4CPACh. 14 - Prob. 5CPACh. 14 - Prob. 6CPA
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- Alicia's automobile destroyed in a tornado on 5/4/2021. This did not occur in a Federally declared disaster area. Her car was used 70% for business and 30% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If her AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss. $34,000;$-0- $30,000;$-0- $26,000;$5,700 None of these $34,000;$4,500arrow_forwardIvy Gordon's home in Charleston was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $36,000. The average age of the damaged personal property was 5 years, and its useful life was estimated to be 13 years. What is the maximum amount the insurance company would pay Ivy, assuming that it reimburses losses on an actual cash-value basis and has a $500 deductible? Assume that the total coverage requirement is met. Do not round intermediate calculations. Round the answer to the nearest cent.arrow_forwardRoberta was involved in an automobile accident in 2021. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Roberta had let her car insurance expire. If her AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss. a.$50,000; $-0-. b.$34,000; $4,500. c.$26,000; $5,700. d.$34,000; $-0-.arrow_forward
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