Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 17, Problem 35P
To determine
Discuss about the function of Person J.
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Jamie plans to transfer a piece of equipment which is capital property to him, to a corporation he owns. The equipment has an Adjusted Cost Base (ACB) of $90,000, a Undepreciated Capital Cost (UCC) balance of $60,000 and a Fair Market Value (FMV) of $70,000. Jamie has $10,000 in taxable capital losses that he is concerned he won't be able to use in the future.
What would you recommend to Jamie as an elected amount if he wants to defer as much tax as he can and use the losses?
am. 110.
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Chapter 17 Solutions
Individual Income Taxes
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - A depreciable business dump truck has been owned...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQCh. 17 - Prob. 14DQCh. 17 - Prob. 15DQCh. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 18DQCh. 17 - Prob. 19DQCh. 17 - Prob. 20DQCh. 17 - Prob. 21CECh. 17 - Prob. 22CECh. 17 - LO.3 Renata Corporation purchased equipment in...Ch. 17 - LO.3 Jacob purchased business equipment for 56,000...Ch. 17 - Sissie owns two items of business equipment. Both...Ch. 17 - Prob. 26CECh. 17 - Prob. 27CECh. 17 - LO.4 Enzo is a single taxpayer with the following...Ch. 17 - Prob. 29CECh. 17 - Prob. 30CECh. 17 - LO.1, 2 Jenny purchased timber on a 100-acre tract...Ch. 17 - Prob. 32PCh. 17 - LO.2 A sculpture that Korliss Kane held for...Ch. 17 - Prob. 34PCh. 17 - Prob. 35PCh. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - Prob. 39PCh. 17 - Prob. 40PCh. 17 - Prob. 41PCh. 17 - Prob. 43PCh. 17 - Joanne is in the 24% tax bracket and owns...Ch. 17 - Prob. 45PCh. 17 - Prob. 46PCh. 17 - Prob. 47PCh. 17 - Prob. 48PCh. 17 - Prob. 49PCh. 17 - Jasmine owned rental real estate that she sold to...Ch. 17 - Prob. 51PCh. 17 - Prob. 52PCh. 17 - Prob. 53PCh. 17 - Prob. 54PCh. 17 - Jay sold three items of business equipment for a...Ch. 17 - Prob. 1RPCh. 17 - Prob. 2RPCh. 17 - Prob. 3RPCh. 17 - Prob. 4RPCh. 17 - Prob. 1CPACh. 17 - Prob. 2CPACh. 17 - Jerry uses a building for business purposes. The...Ch. 17 - Prob. 4CPACh. 17 - Prob. 5CPACh. 17 - Prob. 6CPACh. 17 - Wally, Inc., sold the following three personal...Ch. 17 - Net Section 1231 losses are: a. Deducted as a...Ch. 17 - Prob. 9CPACh. 17 - Prob. 10CPA
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- Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): Note: Loss amounts should be Indicated by a minus sign. Enter NA If a situation is not applicable. Leave no answer blank. Enter zero If applicable. Problem 11-45 Part-d (Static) Required: d1. What are the amount and character of Hart's recognized gain or loss if the asset is a nonresidential building sold for $450,000? d2. What effect does the sale have on Hart's tax liability for the year? Complete this question by entering your answers in the tabs below. Required d1 Required d2 What are the amount and character of Hart's recognized gain or loss if the asset is a nonresidential building sold for $450,000? Description Total Gain or (Loss) Recognized Remaining §1231 gain…arrow_forwardHart, an Individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. Problem 11-45 Part-e (Static) Required: e1. Now assume that Hart Is a C corporation. What are the amount and character of Its recognized gain or loss if the asset is a monresidential building sold for $450,000? e2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)? Answer is not complete. Complete this question by entering your answers in the tabs below. Required el Required e2 Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or…arrow_forwardGarcia disposed of his principal residence for P2,000,000 and immediately acquired a new one for P1,800,000. The old residence was acquired for P1,000,000 and had a fair market value of P2,500,000 on the date of sale. Compute the capital gains tax on the sale. * Zero 12,000 15,000 150,000arrow_forward
- 3. Jake purchased a $235,000 crane for his construction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume Jake is a. On what form would the gain or loss originally be reported? b. What is the amount of gain or loss on the sale? c. What amount of the gain or loss is subject to ordinary tax rates?arrow_forward99. Suzanne, an individual, began business four years ago and has never sold a § 1231 asset. Suzanne owned each of the assets for several years. In the current year, Suzanne sold the following business assets: Asset Original Cost Machinery Furniture Building $12,000 10,000 90,000 Accumulated Depreciation $7,000 2,000 20,000 Gain/Loss $6,000 (3.000) 15,000 Assuming Suzanne's marginal ordinary income tax rate is 35 percent, what is the character of the gains and losses and what affect do they have on Suzanne's tax liability?arrow_forward7. Gibby sold 4-year-old business machinery for $100,000.The machinery had an original cost of $ 80,500. Gibby claimed$ 12,500 in depreciation through the date of sale. The only other§ 1231 transactions H has had were in the two prior years. Hehad a §1231 gain of $3,500 two years ago and a §1231 loss of$12,000 last year. How are Gibby’s gains for the current yeartreated?a. $12,500 ordinary gain; $19,500 long-term capital gainb. $21,000 ordinary gain; $11,000 long-term capital gainc. $24,500 ordinary gain; $7,500 long-term capital gaind. $32,000 ordinary gaine. $32,000 long term capital gainarrow_forward
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- Brandon, an individual, began business four years ago and has never sold a §1231 asset. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Asset Original Cost $ 30,000 10,000 90,000 Accumulated Depreciation $ 7,000 6,000 20,000 Gain/Loss Machinery $ 10,000 Computers (2,000) Building (2,000) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability?arrow_forwardN1.arrow_forwardHart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): a1. What are the amount and character of Hart's recognized gain or loss if the assit is tangible personal property sold for $450,000? a2. What effect does the sale hav on Hart's tax liability for the year?arrow_forward
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