Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 16, Problem 34P
To determine
Explain the treatment for $1,000.
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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.
Nancy Kapiolani lives in a duplex that she owns at 1218 Park Ave S., Tacoma, WA 98447. Nancy rents one-half of her duplex and lives in the other half. In 2023, her existing tenant’s lease expires and the tenant moves out. The tenant paid $2,500 in rent during 2023. Nancy had collected first and last months’ rent from the tenant in 2022. Due to the condition of the unit, Nancy keeps $200 of the security deposit to make repairs. Her new tenant moves in and pays $1,000 per month for a one-year lease starting July 1, 2023. The new tenant is also required to pay Nancy first and last months’ rent plus a $500 security deposit. The unit is rented for 365 days during 2023.
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Katrina, age 58, rented (as a tenant) the house that was her principal residence from January 1, 2019 through December 31, 2020. She purchased the house on January 1, 2021, for $150,000 and continued to occupy it through June 30, 2022. She leased it to a tenant from July 1, 2022, through December 31, 2023. On January 1, 2023, she sells the house for $350,000. She incurs a realtor’s commission of $20,000. (1) Calculate her recognized gain if her objective is to minimize the recognition of gain and she does not intend to acquire another residence. (2) Explain your answer.
Chapter 16 Solutions
Individual Income Taxes
Ch. 16 - Prob. 1DQCh. 16 - An individual taxpayer sells some used assets at a...Ch. 16 - Alison owns a painting that she received as a gift...Ch. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - After netting all of her short-term and long-term...Ch. 16 - Prob. 10DQ
Ch. 16 - Near the end of 2019, Byron realizes that he has a...Ch. 16 - Prob. 12CECh. 16 - Prob. 13CECh. 16 - Prob. 14CECh. 16 - On May 9, 2019, Glenna purchases 500 shares of...Ch. 16 - Prob. 16CECh. 16 - Prob. 17CECh. 16 - Elliott has the following capital gain and loss...Ch. 16 - Prob. 19PCh. 16 - Prob. 20PCh. 16 - Prob. 21PCh. 16 - George is the owner of numerous classic...Ch. 16 - Prob. 23PCh. 16 - Prob. 24PCh. 16 - Prob. 25PCh. 16 - Melaney has had a bad year with her investments....Ch. 16 - Prob. 27PCh. 16 - Prob. 28PCh. 16 - Prob. 29PCh. 16 - Prob. 30PCh. 16 - Prob. 31PCh. 16 - Prob. 32PCh. 16 - Prob. 33PCh. 16 - Prob. 34PCh. 16 - Prob. 35PCh. 16 - Prob. 36PCh. 16 - Prob. 37PCh. 16 - Dennis sells short 100 shares of ARC stock at 20...Ch. 16 - Elaine Case (single with no dependents) has the...Ch. 16 - Prob. 40PCh. 16 - Prob. 41PCh. 16 - Prob. 42PCh. 16 - Paul has the following long-term capital gains and...Ch. 16 - Helena has the following long-term capital gains...Ch. 16 - For 2019, Ashley has gross income of 38,350 and a...Ch. 16 - Prob. 46PCh. 16 - For 2019, Wilma has properly determined taxable...Ch. 16 - Prob. 48PCh. 16 - Gray, Inc., a C corporation, has taxable income...Ch. 16 - Harriet, who is single, is the owner of a sole...Ch. 16 - Ashley Panda lives at 1310 Meadow Lane, Wayne, OH...Ch. 16 - Paul Barrone is a graduate student at State...Ch. 16 - Prob. 1RPCh. 16 - Prob. 2RPCh. 16 - Prob. 3RPCh. 16 - Prob. 4RPCh. 16 - Prob. 1CPACh. 16 - Conner purchased 300 shares of Zinco stock for...Ch. 16 - Brad and Angie are married and file a joint...
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