Qn1. In the first question it is declard that the stock which is already held by Borgan's uncle was given to Borgan as a gift. The detailed calculations are below.
The FMV as on 20.07.2017 for 700 shared - $175000
FMV of per unit of shares - $175000/700 = $250
His uncle bought this 700 share for $112000
so, The per unit cost of share or purchase price of shares is $160/share ( 112000/700=160)
The diffrence between purchase price and FMV of single share is $250-$160= $90
The profit or the growth of 700 shares $90x700 = 63000
In the question it is given that uncle had made another gift to Borgan an amount of $22000 which is excluded.
It is given in the question that The AGI of Borgan at the end of 2018 is $80000.
It is hereby noted that:-
Adjusted Gross Income (AGI) = Gross income - Adjustments
Gross total income includes wages or salary from a job, bank account interest, stock dividends and rental property income etc and excludes life insurance payments, child support, loan proceeds, inheritances or gifts etc.
So. in our question the amount recieved as gift by Borgan will not be include in the calculation of his AGI.
So, The AGI of $80000 without considering the above is correct if even consider the transactions as it is purely a gift.
PI:5-36 (similar to) Question Help Brogan received 700 shares of Denver Corporation stock from his unde...
his uncle purchased Longhorn stock for $31,200. Personal-Use Property Converted to Rental Property. Tally owns a house that she has been living in for eight years. She purchased the house for $245,000 and the FMV today is $200,000. She is moving into her friend's house and has decided to convert her resi- dence to rental property. Assume 20% of the property's value is allocated to land. a. What is the basis of the house for depreciation? b. If she claims...
Brandon received 100 shares of Florida Corporation stock from his uncle as a gift on July 20, 2018, when the stock had a $20,000 FMV. His uncle paid $14,000 for the stock on April 12, 2002. The taxable gift was $20,000, because his uncle made another gift to Brandon for $30,000 in January and used the annual exclusion. The uncle paid a gift tax of $1,000. Without considering the transactions below, Brandon's AGI is $30,000 in 2019. No other transactions...
Ramon received a gift of stock from his uncle. The basis of the stock to his uncle was $25,000, and it had a FMV of $18,000 at the date of the gift. The donor held the property for more than one year. Complete the following chart under the independent situations shown: - Use current tax laws Situation 1 Situation 2 Situation 3 Donor’s basis $25,000 $25,000 $25,000 FMV at gift date 18,000 18,000 18,000 Ramon’s selling price 30,000 15,000 20,000...
5-61: Betty incurs the following transactions during the current year. Without considering the transactions, her 2018 AGI is $92,000. Analyze the transactions and answer the following questions: • On March 10, 2018, she sells a painting for $2,000. Betty is the artist, and she completed the painting in 2013. Her basis for the painting is $50. • On June 18, 2018, she receives $28,500 from the sale of stock purchased by her uncle in 2003 for $10,000, which she inherited...
5. Joseph exchanged farmhouse that he used in his farming business for a building used by Sandy in her motorcycle manufacturing business. The farmhouse had a FMV of $345,000 and cost $285,000. The allowable depreciation was $45,000, but because of an error, Joseph only took $25,000 of depreciation. The building had a FMV of $275,000 and an adjusted basis of $315,000. Because the building was expected to increase in value rapidly, Sandy only gave Joseph $45,000 cash. What is Joseph's...
Question Help Martinharts 125 shares of Atom Corporation stock from his father. The veckohisher 500 and had a $850 F on the date of bisher's death in 2010. The albmate valuation date was relected at the Air Corporation stock for $11.700, what would be his table gain on the sale? (Table gain Proceeds of sale-Tox basis of lock O Mair's taxable gain on the sale of Alom stock is
Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1112. Devon does not want $3 to go to the Presi-dential Election Campaign Fund. Devon’s wife, Ariane, passed away in 2014. Devon’s son, Tom, who is age 18, resides with Devon. Tom’s Social Security number is 123-45-6788. Devon owns a sole proprietorship for which he uses the accrual method of account-ing and maintains no inventory. His revenues and expenses for...
Note: This problem is for the 2018 tax year. Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1112. Devon does not want $3 to go to the Presidential Election Campaign Fund. Devon's wife, Ariane, passed away in 2014. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45-6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting...
Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...
Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2019 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with...