Homework Answers
Solution:
Rick`s Basis in the residence = $ 523,640
| Rick`s Basis in the residence | |
| Purchase Price | $ 530,000 |
| Less: Portion of rick real estate tax | $ (6,360) |
| Basis | $ 523,640 |
Notes:
1) No need to consider the information about who paid the real estate tax. Who ever paid the tax, their portion of tax can be claimed by respective individuals.
Add Answer to:
Alicia sold her personal residence to Rick on June 30 for $530,000. Before the sale, Alicia...
Problem 10-29 (Algorithmic) (LO. 3, 4) Alicia sold her personal residence to Rick on June 30...
Problem 10-29 (Algorithmic) (LO. 3, 4) Alicia sold her personal residence to Rick on June 30 for $185,000. Before the sale, Alicia paid the real estate tax of $2,775 for the calendar year. For income tax purposes, the deduction is apportioned as follows: $555 to Alicia and $2,220 to Rick. What is Rick's basis in the residence? Previous Next > Suit Test for Grading
This year Norma, a single taxpayer, paid $11,200 of real estate taxes on her personal residence...
This year Norma, a single taxpayer, paid $ 11,200 of real estate taxes on her personal residence and $ 9,500 of state income taxes. Which of the following is true?Multiple ChoiceNorma can deduct $ 10,000 of taxes as an itemized deduction.Norma can deduct $ 9,500 of state income taxes as a for AGI deduction.If Norma has no other itemized deductions, she should still itemize her deductions.Norma can deduct $ 11,200 of real estate taxes as an itemized deduction.
Alice rented her personal residence for 13 days to summer vacationers for $4,800. She has AGI of $110,500 before the ren...
Alice rented her personal residence for 13 days to summer vacationers for $4,800. She has AGI of $110,500 before the rental income. Related expenses for the year include the following: Real property taxes $ 4,420 Utilities 5,900 Insurance 950 Mortgage interest 7,800 Repairs 910 Depreciation 18,500 a. What is the net rental income includible in AGI? Net rental income: b. Is mortgage interest and property taxes deductible on Schedule A? yes or no
Question 212.56 pts On January 8, 2018, Sam, age 62, sold for $410,000 his personal residence...
Question 212.56 pts On January 8, 2018, Sam, age 62, sold for $410,000 his personal residence which had an adjusted basis of $150,000. Sam purchased the home in 2013 and used it as his personal principal residence for the last three years. On May 1, 2018, he purchased a new residence for $520,000. For 2018, Sam should recognize a gain on the sale of his residence of: $10,000 $250,000 $260,000 $0 Flag this Question Question 222.56 pts Jody purchased a...
Laura, age 30, has owned her principal residence (adjusted basis of $225,000) in Jamestown, North Dakota,...
Laura, age 30, has owned her principal residence (adjusted basis of $225,000) in Jamestown, North Dakota, for five years. During the first three years of ownership, she occupied it as her principal residence. During the past two years, she was in graduate school and rented the residence. After graduate school, Laura returned to Jamestown but decided to purchase a different residence for $400,000 and listed her old residence for sale at $340,000. Due to a slow real estate market, 11...
1. On June 1 of the current tax year, Tab converted a machine from personal use...
1. On June 1 of the current tax year, Tab converted a machine from personal use to use as rental property. At the time of the conversion, the machine was worth $70,000. Five years ago Tab purchased the machine for $120,000. The machine is subject to a $100,000 mortgage. What is the basis of the machine for depreciation purposes? a. $70,000 b. $90,000 c. $100,000 d. $120,000 e. $150,000 2. Hazel, a calendar-year taxpayer, purchased a new business asset (five-year...
In the current year, Sandra rented her vacation home for 75 days, used it for personal...
In the current year, Sandra rented her vacation home for 75 days, used it for personal use for 22 days, and left it vacant for the remainder of the year. Her income and expenses before allocation are as follows: Rental income $ 15,000 Real estate taxes 2,000 Utilities 1,500 Mortgage interest 3,800 Depreciation 7,200 Repairs and maintenance 1,300 What is Sandra’s net income or loss from the rental of her vacation home? Use the Tax Court method. (Round your intermediate...
On May 15, 2018 Joseph and Gladys sold their personal residence for $585,150 and purchased a new ...
On May 15, 2018 Joseph and Gladys sold their personal residence for $585,150 and purchased a new house for $485,000. They had owned the old house for 5 years and Gladys had inherited it when her mother passed away. Her mother had paid $17,000 for it when she purchased it many years ago, and it had a market value of $525,000 when she passed away) The house had been their personal residence ever since Gladys mother passed away. They moved...
On June 1, 2015, Mario entered into a contract to sell real estate for $1 million...
On June 1, 2015, Mario entered into a contract to sell real estate for $1 million (adjusted basis $200,000.) The sale was conditioned on a rezoning of the property for commercial use. A $50,000 deposit placed in escrow by the purchaser was refundable in event the rezoning was not accomplished. After considerable controversy, the application was approved on November 10, and two days later, the sum of $950,000 was paid to Mario’s estate in full satisfaction of the purchase price....
36. In 2018, Ruth sold a painting for $25,000 that she had bought for her personal...
36. In 2018, Ruth sold a painting for $25,000 that she had bought for her personal use in 1979 at a cost of $10,000. On her 2018 return, Ruth should treat the sale of the painting as a transaction resulting in: A. Ordinary income. B. Long-term capital gain. C. No income as this is the sale of a personal asset. 37. In 2018, Rex sold an auto for $10,000 that he had bought for his personal use in 2009 at...
Problem 10-29 (Algorithmic) (LO. 3, 4) Alicia sold her personal residence to Rick on June 30 for $185,000. Before the sale, Alicia paid the real estate tax of $2,775 for the calendar year. For income tax purposes, the deduction is apportioned as follows: $555 to Alicia and $2,220 to Rick. What is Rick's basis in the residence? Previous Next > Suit Test for Grading
On May 15, 2018 Joseph and Gladys sold their personal residence for $585,150 and purchased a new house for $485,000. They had owned the old house for 5 years and Gladys had inherited it when her mother passed away. Her mother had paid $17,000 for it when she purchased it many years ago, and it had a market value of $525,000 when she passed away) The house had been their personal residence ever since Gladys mother passed away. They moved...
Most questions answered within 3 hours.
-
With a $16 Trillion national ebt, and projected annual budget
eficits in excess of $1 Trillion...
asked 6 minutes ago -
A machine shop owner wishes to assign each of three machinists
(labeled 1, 2, and 3)...
asked 21 minutes ago -
Regarding language development, which of the following
statements is FALSE?
Babies are able to cry from...
asked 20 minutes ago -
A couple of small ice cubes at 0 °C are added to glass of warm
water...
asked 18 minutes ago -
Slow 'n Steady, Inc., has a stock price of $30, will pay a
dividend next year...
asked 22 minutes ago -
During the current financial year, the owner of Omega
Enterprises withdrew supplies of $2,000 for personal...
asked 18 minutes ago -
PLEASE SHOW MATH CALCULATION(formulas)it has to be done on excel
P12-4 Last year (2016), Richter Condos...
asked 26 minutes ago -
A 0.25μF capacitor is charged to 50 V . It is then connected in
series with...
asked 42 minutes ago -
Calculate the current, I, through the batteries for:
- a 2-bulb parallel circuit
- How does...
asked 44 minutes ago -
Choose the sentence that uses correct punctuation.
1a. The prefatory parts of a report include the...
asked 50 minutes ago -
For the element arsenic, which one of the following sets of
quantum numbers could not apply...
asked 59 minutes ago -
Compare and contrast the architectures of 3 types of ADCs:
Flash, SAR, and pipelined. Use the...
asked 1 hour ago