South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
Question
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Chapter 15, Problem 54P

a.

To determine

Compute Person L’s recognized gain on the sale of two residences.

b.

To determine

Describe by assuming that both residences fulfill the two-year ownership and use tests as Person L’s principal residence.

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Lloyd owns a beach house (four years) and a cabin in the mountains (six years). His adjusted basis is $300,000 in the beach house and $315,000 in the mountain cabin. Llyod also rents a townhouse in the city where he is employed. During the year, he occupies each of the three residences as follows. Townhouse 135 days Beach house 155 days Mountain cabin 75 days The beach house is close enough to the city that he can commute to work during the spring and summer. Although this level of occupancy may vary slightly from year to year, it is representative during the time period that Lloyd has owned the two residences. Because Lloyd plans to retire in several years, he sells both the beach house and the mountain cabin. The mountain cabin is sold on March 3, 2020, for $540,000 (related selling expenses of $35,000). The beach house is sold on December 10, 2020, for $700,000 (related selling expenses of $42,000). a.  Calculate Lloyd's least allowable recognized gain on…
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Chapter 15 Solutions

South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)

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