1 Assume instead of the above that Aliza purchases a house for $500,000. She pays $200,000 in cash and signs a mortgage for $300,000. After living in the house as her principle residence for 2 years, she sells the house for $900,000 in cash add the buyer assumes her mortgage of$200,000. What is a Alizsa’s amount realized on the sale?
2. Does Aliza realize a gain on the sale of her residence, and if so, what is the amount?
3. Does Aliza recognize a gain on the sale, and if so what is the amount?
4. Isaac buys a piece of land as an investment, paying $20,000. Three years later he trades the land to Isadore for a piece of land worth $26,000. Isaac holds the new land as an investment. Does Isaac realize a gain on the swap of the lland, and if so how much gain is realized?
5. Does Isaac recognize a gain on the swap of the land and if so how much is it?
6. What is Isaac’s adjusted basis in the new property he receives?
7. What is Isaac’s holding period in the new land he receives?
Answer 1 Aliza realise 1.1 million on the sale of property
Answer2 yes Aliza realised a gain of 800 thousand on sale of the property
Answer 3 yes Aliza realised a gain of 800 thousand on the sale of the property
Answer 4 yes Isaac realised a gain of 6000 on the sale .
Answer 5 same as question 4
Sorry I can answer only 4 question as per the guidelines
1 Assume instead of the above that Aliza purchases a house for $500,000. She pays $200,000...
8. Assume instead of the above that Aliza purchases a house for $500,000. She pays $200,000 in cash and signs a mortgage for $300,000. After living in the house as her principle residence for 2 years, she sells the house for $900,000 in cash add the buyer assumes her mortgage of$200,000. What is a Alizsa's amount realized on the sale? 9. Does Aliza realize a gain on the sale of her residence, and if so, what is the amount? 10....
1. Joe buys a piece of land on January 3rd of the current year. He pays$10,000 in cash. What is Joe’s basis in the land? 2. Suppose Joe gives the seller $7,000 in cash and a note for $3,000 paying interest at the current rate of 3%. What is Joe’s basis in the land? 3. Suppose instead that Joe gives the seller $6,000 in cash, a note with interest, promising to pay $3,000 in one year, and a piece of...
11. Isaac buys a piece of land as an investment, paying $20,000. Three years later he trades the land to Isadore for a piece of land worth $26,000. Isaac holds the new land as an investment. Does Isaac realize a gain on the swap of the lland, and if so how much gain is realized? 12. Does Isaac recognize a gain on the swap of the land and if so how much is it? 13. What is Isaac's adjusted basis...
Xian and Devi are each buying a house for $500,000. Xian puts $200,000 down and gets a mortgage for the other $300,000 at a 6% annual effective rate. Devi puts $100,00 down and gets a mortgage for the other $400,000 at the same annual rate. Both mortgages are interest only (i.e they pay 5% interest at the end of each year but do not repay any of the principal.) a) How much leverage does Xian have? How much leverage...
Q2) Xian and Devi are each buying a house for $500,000. Xian puts $200,000 down and gets a mortgage for the other $300,000 at a 6% annual effective rate. Devi puts $100,00 down and gets a mortgage for the other $400,000 at the same annual rate. Both mortgages are interest only (i.e they pay 5% interest at the end of each year but do not repay any of the principal.) a) How much leverage does Xian have? How much leverage...
! Required information [The following information applies to the questions displayed below.) Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock: Building Land Total THV $112,000 168,000 $280,000 Tax- Adjusted Basis $ 28,000 112,000 $140,000 To equalize the exchange. Wizard Corporation paid...
Callie incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and tax bases: Tax FMV Basis Inventory $ 34,500 $ 17,000 Building 193,000 147,000 Land 321,750 329,000 Total $ 549,250 $ 493,000 The corporation also assumed a mortgage of $135,750 attached to the building and land. The fair market value of the corporation’s stock...
3. Venom owns land with an adjusted basis of $280,000 and a fair market value of $150,000. He sells the land for $115,000 to Phenom, Inc., a corporation in which he owns 60% of the stock. Determine the amount of realized and recognized gain or loss to Venom and the adjusted basis for Phenom. (5 points) 4. In 2018, Riot purchased 200 shares of Misanthropy Corporation stock for $24,000 on January 1, 2015. He sells 50 shares of the 200...
Deirdre sold 112 shares of stock to her brother, James, for $3,584. Deirdre purchased the stock several years ago for $4,592. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What gain or loss does Deirdre recognize on the sale? b. What amount of gain or loss does James recognize if he sells the stock for $4,816? c. What amount of gain or loss does James recognize if he sells the...
Question 40 of 75. Leon sold residential rental property he had owned for three years. As part of this sale, Leon realized gain on the sale of the rental house he was depreciating using regular MACRS. Which Code section describes the gain on the LAND? 。51231 。51245. O §1250. O §1254. Question 13 of 75 In January 2015, Sue purchased and placed into service a $20,000 piece of equipment for exclusive use in her business Since then, she claimed a...