Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 16, Problem 6DQ
To determine
Explain the issues face by person H if he treat the gain as a long-term
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Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its fair market value of $100,000.
A . What is Lisa's realized and recognized gain or loss?
B. What is Alfred's recognized gain or loss if he subsequently sells the property for $138,000? For $80,000?
Liv wishes to acquire some undeveloped land as an investment. She is unable to pay the whole purchasing price. Instead, Olivia pays the landowner $51,900 in exchange for a four-year option to purchase the land for $1,038,000. Olivia sells the option for $64,875, fourteen months after obtaining it. What is Olivia's capital gain, and what is the nature of it?
She has made a $ long-term taxable profit.
Lisa sells business property with an adjusted basis of $138,900 to her son, Alfred, for its fair market value of $111,120.
If an amount is zero, enter "0".
a. What is Lisa's realized and recognized gain or loss?
Lisa has a $
realized loss
of which $
is recognized.
b. What is Alfred's recognized gain or loss if he subsequently sells the property for $152,790? For $90,285?
If Alfred sells the property for $152,790, he has a recognized gain
If Alfred sells the property for $90,285, he has a recognized loss
of $
✓of $
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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- Lisa sells business property with an adjusted basis of $168,800 to her son, Alfred, for its fair market value of $135,040. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $ realized of which $ b. What is Alfred's recognized gain or loss if he subsequently sells the property for $185,680? For $109,720? If Alfred sells the property for $185,680, he has a recognized is recognized. If Alfred sells the property for $109,720, he has a recognized of $arrow_forwardOlivia wishes to purchase some undeveloped land for investment purposes. She is unable to pay the whole purchasing price. Instead, Olivia pays the landowner $51,900 in exchange for the right to purchase the land for $1,038,000 at any time over the following four years. Olivia sells the option for $64,875, 14 months after obtaining it. What is the size and nature of Olivia's gain or loss? She has a $ lengthy capital gain.arrow_forwardJorge owns two passive investments, Activity A and Activity B. He plans to sell Activity A in the current year or next year. Juanita has offered to buy Activity A this year for an amount that would produce a taxable passive activity gain to Jorge of $115,000. However, if the sale, for whatever reason, is not made to Juanita, Jorge believes that he could find a buyer who would pay about $7,000 less than Juanita. Passive activity losses and gains generated (and expected to be generated) by Activity B follow: Two years ago ($35,000) Last year (35,000) This year (8,000) Next year (30,000) Future years Minimal profits All of Activity B's losses are suspended. Jorge is in the 32% tax bracket. If Activity A is sold next year for $7,000 less than Juanita's offer: How are the suspended losses for Activity B treated? What is the Federal income tax related to the sale of Activity A? $_______arrow_forward
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