ZuoTi.Pro
Question

Cynthia bought a home (for personal use) from Louise in Year 1 for $500,000. At the...

Cynthia bought a home (for personal use) from Louise in Year 1 for $500,000. At the time of purchase she incurred the following expenses: $10,000 title insurance, $20,000 brokerage and legal fees. Louise incurred the following expense: $25,000 brokerage and legal expenses. In Year 3, Cynthia added a deck at a cost of $80,000. In Year 4, she repaired the floor at a cost of $20,000.

What is Cynthia’s adjusted basis in the house in Year 4?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

Cynthia’s adjusted basis in the house in Year 4 = Purchase Cost + Title insurance + Brokerage and Legal fees + cost of addition of deck

= 500000 + 10000 + 20000 + 80000

= $610,000

Cynthia’s adjusted basis in the house in Year 4 = $610,000

0 0
Add a comment
Know the answer?
Add Answer to:
Cynthia bought a home (for personal use) from Louise in Year 1 for $500,000. At the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • This is literally all the information from the question. Amanda is self-employed and uses her personal...

    This is literally all the information from the question. Amanda is self-employed and uses her personal automobile in connection with her business. During 2019, Amelie drove her car a total of 26,000 miles. Her business log shows that she drove 23,400 miles for business purposes. During 2019, Amelie incurred the following actual expenses based on 100% use that is, 26,000 total miles: (The standard mileage rate method permits a deduction based on a mileage rate of 58 cents per mile...

  • 1. Brinkman's General Store had the following transactions during the current year: $500,000 Sales generated for...

    1. Brinkman's General Store had the following transactions during the current year: $500,000 Sales generated for the year on credit (85% have been collected at year end) Borrowed a short-term loan from the bank Interest incurred but not yet paid on the loan Bought inventory for resale Depreciation expense on building Operating expenses Cost of inventory sold Paid suppliers for inventory Accounts payable, ending balance Tax rate 50,000 5,000 40,000 10,000 50,000 375,000 15,000 10,000 40% Net income reported for...

  • Problem 13-44 (LO. 1) Anne sold her home for $290,000 in 2019. Selling expenses were $17,400....

    Problem 13-44 (LO. 1) Anne sold her home for $290,000 in 2019. Selling expenses were $17,400. She purchased it in 2013 for $200,000. During the period of ownership, Anne had done the following: • Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.) • Deducted a casualty loss in 2015 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000 (after the $100 floor and...

  • As at 30 June 2017, Joe Tang had disposed of the following assets: (a) A holiday house. The house was purchased on 1 Mar...

    As at 30 June 2017, Joe Tang had disposed of the following assets: (a) A holiday house. The house was purchased on 1 March 2001 for $200,000 and was sold for $600,000. At the time of acquisition Joe spent $2,000 on surveyor’s cost, $15,000 on stamp duty and $3,000 for a valuation. On 1 February 2010, Joe spent $100,000 adding a second floor to the house. On 15 June 2014 he spent $20,000 in a successful court action to establish...

  • 1. Which of the following could qualify as a residence, for personal residence exclusion from gain?...

    1. Which of the following could qualify as a residence, for personal residence exclusion from gain? 1. A condominium. 2. An RV. 3. A boat. 4. Vacant land adjacent to personal residence regularly used by the taxpayer. a. 4 only. b. 1 and 4. c. 1, 2, and 3. d. 1,2,3, and 4. 2. Philip wants to sell his rental beach home and purchase rental property in the mountains. H friend, Randy, tells him he can do a nonsimultaneous tax-free...

  • Part A Way Corporation disposed of the following tangible personal property assets in the current year...

    Part A Way Corporation disposed of the following tangible personal property assets in the current year Date Date Sold 5/12/13 7/15/19 Original Basis $ 55,000 Acquired Asset Convention Furniture (7-year) Machinery (7-year) Delivery truck* (5- year) Machinery (7-year) 10/11/17 8/11/19 Computer (5-year) HY 3/23/14 3/15/19 мо 72,000 9/17/16 3/13/19 HY 20,000 250,000 80,000 мO HY 2/11/1912/15/19 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2019 depreciation expense (Way has not...

  • 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...

  • Graded assignment 5 Gerald and Patty Hanson are married taxpayer who have a 12 year old...

    Graded assignment 5 Gerald and Patty Hanson are married taxpayer who have a 12 year old son. The following is their income and expenses for 2019 (you may opt to calculate for 2018): Gerald’s w-2 wages:                                        $80,000 Patty’s w-2 wages:                                          40,000 Patty’s sole proprietorship (Patty is a noted sculptor) Sales                     $20,000 Materials               (8,000) Depreciation        (1,000) Interest income on their investments     $5,000 Dividend income                                               500 In additional, Gerald and Patty incurred the following expenses: Prescription drugs (after insurance)                                         $450...

  • 1) Prepare Financial Statements for Dec 31, 2018 from transactions listed at bottom of the page,...

    1) Prepare Financial Statements for Dec 31, 2018 from transactions listed at bottom of the page, complete with any & all Notes to the Financial Statements. Turn in Journal Entries, Trial Balance, Adjusted Journal Entries, Adjusted Trial Balance, and Post-Closing Trial Balance separately. Helpful hints-Please double check your work, make sure it balances, make sure accounts are in the correct order Madoff’s Marijuana Dispensary had the following beginning balances December 1, 2018. Cash                                                                                         $ 3,000,000 Rent Expense                                                                            22,000...

  • Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...

    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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT