Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $425,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of ye...
Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $425,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $715,000.
a) Assume the original facts, expect that Stephanie moves in with Steve on March 1 of year 3 and the couple married on March 1 of year 4. Under state law, the couple jointly owns Steve's home beginning on the date they are married. On December 1 of year 3, Stephanie sells her home they she lived in before she moved in with Steve. She excludes the entire $40,000 gain on the sale on her individual year 3 tax return. What amount of gain must the couple recognize on the sale in June of year 5?
Homework Answers
a) The recognized gain will be $40,000. Since the reason for sale was not due to unusual circumstances, the couple won't qualify for the home sale exclusion.
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Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $425,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of ye...
Required information [The following information applies to the questions displayed below.) Steve Pratt, who is single,...
Required information [The following information applies to the questions displayed below.) Steve Pratt, who is single, purchased a home in Spokane, Washington, for $587,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $940,000. (Leave no answer blank. Enter zero if applicable.) c. Assume the original facts, except that Steve married Stephanie on February 1 of year...
Simon is an Australian resident taxpayer who has undertaken the following transactions during the tax year ending 30 June 2019. Item number Transaction Particulars 1 Sold car Purchased...
Simon is an Australian resident taxpayer who has undertaken the following transactions during the tax year ending 30 June 2019. Item number Transaction Particulars 1 Sold car Purchased on 1 March 2010 for $30,000. Sold on 20 April 2019 for $12,000 2 Sold painting Purchased on 1 January 2008 for $600. Sold on 3 February 2019 for $6,000 3 Shares sold in C Pty Ltd Purchased on 14 April 2013 for $10,000 and sold on 15 May 2019 for $20,000....
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Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2019 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with...
Super stuck on a couple of questions on this scenario. Advanced Scenario 7: Mark and Barbara...
Super stuck on a couple of questions on this scenario.
Advanced Scenario 7: Mark and Barbara Matthews Directions Using the tax software, complete the tax retum, including Form 1040 and all appropri- ate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNS) or Employer identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. Interview Notes • Mark and Barbara are married and want to file...
Required information [The following information applies to the questions displayed below.) Steve Pratt, who is single, purchased a home in Spokane, Washington, for $587,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $940,000. (Leave no answer blank. Enter zero if applicable.) c. Assume the original facts, except that Steve married Stephanie on February 1 of year...
Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2019 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with...
Super stuck on a couple of questions on this scenario.
Advanced Scenario 7: Mark and Barbara Matthews Directions Using the tax software, complete the tax retum, including Form 1040 and all appropri- ate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNS) or Employer identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. Interview Notes • Mark and Barbara are married and want to file...
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