What is the AMT consequence when a taxpayer disposes of rental property
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What is the AMT consequence when a taxpayer disposes of rental property
When a taxpayer is depreciating nonresidential real property or residential rental real property, they are required to use what type of convention?
Firm ML, a noncorporate taxpayer, exchanged residential rental property plus $16,200 cash for 20 acres of investment land with a $250,000 FMV. ML used the straight-line method to compute depreciation on the rental property a. Assuming that ML's exchange was negotiated at arm's length, what is the FMV of the rental property? b. If the adjusted basis of the rental property is $228,750, compute ML's realized and recognized gain c. Compute ML's basis in the 20 acres of investment land...
in the disposition of a part rental part personal use property under what circumstances would a taxpayer not need to allocate gain between the rental and personal part of the property? a. The disposition is part of a nontaxable exchange. b. The disposition is the result of foreclosure. c The rental part of the property was separate from the part used personally d. The taxpayer rented an extra bedroom within the
In the disposition of a part rental part personal use property, under what circumstances would a taxpayer NOT need to allocate gain between the rental and personal part of the property?
Question 47 of 75. In the disposition of a part rental/part personal-use property, under what circumstances would a taxpayer NOT need to allocate gain between the rental and personal part of the property? The disposition is part of a nontaxable exchange. The disposition is the result of foreclosure. The rental part of the property was separate from the part used personally. The taxpayer rented an extra bedroom within the residence. Mark for follow up
Consider the following two scenarios. A taxpayer acquires a rental property in April 2019 for $1 million (the same case as the depreciation assignment; $800,000 assigned to building; 27.5year depreciation) and sells it for $1.5 million either on: (a) December 31, 2019 or on (b) December 31, 2020 1. What is the gain on sale? Remember to add back the value of the land when calculating the gain. Show calculations. You will need the correct solutions to the Depreciation1 assignment...
Which of the following situations do not count as days of personal use by the owner of rental property? a. The taxpayer stays at the house for 10 days while making repairs to the property. b. The taxpayer's sister pays a fair rental price to rent the property for 10 days during the year. c. The taxpayer donates a week of use to a qualified charitable organization. d. All of the above count as days of personal use. e. None...
When a taxpayer sells a property, the sales price must be allocated to each of the tax assets that make up that property. (True or False)
Consider the following two scenarios. The taxpayer sells the property acquired in April 2019 for $800,000 (rental real estate, 27.5 year depreciation) on December 31, 2019 or December 31, 2020 for $1,000,000. Assume the taxpayer is in the 37 percent tax bracket. What is the gain on the sale? Show Calculations.
If a client sells a rental property for a gain and purchases a subsequent rental property, would you advise them to enter into a like-kind exchange? In what instances would it not be advantageous to defer the gain?