Question

Tabitha sells real estate on March 2 of the current year for $359,200. The buyer, Ramona, pays the real estate taxes of $17,960 for the calendar year, which is the real estate property tax year.

Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year.

a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona.
Tabitha: $___________
Ramona: $___________

b. Calculate Ramona’s basis in the property and the amount realized by Tabitha from the sale.
Tabitha: $____________
Ramona: $_____________

Answer 1

Ans a
Real estate apportioned
Tabitha till 1st March
days (31+28+1)	60	days
Real estate apportioned	in $
17960/365*60	2952
Ramona
17960/365*305	15008
ans b
Tabitha amount realized is (359200+2952)	$362,152
Ramona basis is the acquistion price (359200+2952)	$362,152
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