Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jccasta has made 50,000 of capital improvements on the complex, and depreciation daimed or the building to date is $128,700.
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- Clara received from her Aunt Sona property with a FMV at the date of the gift of $30,000. Aunt Sona purchased the property five years ago for $35,000. If Clara sold the property for $33,000, what is her gain or loss on the sale?Angelina gave a parcel of realty to Julie valued at $167,500 (Angelina purchased the property five years ago for $71,000). Required: a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $174,000. What is the amount of her gain or loss, if any, on the sale? a. Amount of taxable gift b. Amount of gainHarry Hanover bought a small rental apartment house several years ago for $120,000. Since then, he has had to put on a new roof, at a cost of $6,000. Apart from this, Harry has spent $4,000 on maintenance of the property and claimed $8,000 in depreciation. Which of the following is Harry's current adjusted basis in the property? O $116,000, $118,000. O$120,000. O $122,000.
- Abby's home had a basis of $360,000 ($160,000 attributable to the land) and a fair market value of $340,000 ($155,000 attributable to the land) when she converted 70% of it to business use by opening a bed-and-breakfast. Four years after the conversion, Abby sells the home for $500,000 ($165,000 attributable to the land). a. Calculate Abby's basis for gain, loss, and cost recovery for the portion of her personal residence that was converted to business use. b. Calculate the cost recovery deducted by Abby during the four-year period of business use, assuming that bed-and-breakfast is opened on January 1 of Year 1 and the house is sold on December 31 of year 4. Assume that the cost recovery percentages are 2.461% in Year 1 and 2.564% in Years 2–5. Round your computations and the final answer to the nearest dollar. The total cost recovery for the four-year period is $_________ c. What is Abby's recognized gain or loss on the sale of the business use portion? Abby's recognized…Craig and Karen Conder purchased a new home on May 1 of year 1 for $200,000. At the time of the purchase, it was estimated that the real property tax rate for the year would be 1 percent of the property's value. How much in property taxes on the new home are the Conders allowed to deduct under each of the following circumstances? Assume the Conders' itemized deductions exceed the standard deduction before considering property taxes and the property tax is the only deductible tax they pay during the year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Required: The property tax estimate proves to be accurate. The seller and the Conders paid their share of the tax. The full property tax bill is paid to the taxing jurisdiction by the end of the year. The actual property tax bill was 1.05 percent of the property's value. The Conders paid their share of the estimated tax bill and the entire difference between the 1 percent estimate…On February 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $209,000. Holly also owns another residential apartment building that she purchased on July 15, 2020, with a cost basis of $384,200. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
- Dorothea originally sold her home for 92000. At that time her adjusted basis in the home was 95000. Five years later she repossessed the home when the balance of the note was 87000. She resold it within on year for 100000. Original sale expenseses were 1150 and resale expenses were 1350. Repossession costs were 2900. She incurred 1100. for improvements prior to the resale. What is Dorothea's recomputed gainReva originally sold her principal residence in an installment sale for 150000. Her adjusted basis in the home was 110000. at that time. Three years later, she repossessed the home from the buyer whan the balance of the note was 135000. She resold it within one year for 160000. Original sale expenseses were 3750, and resale expenses were 4000. Repossession cost were 3800. She incurred 3200 for improvements prior to the resale. What is Reva's basis in the repossessed propertyOisha gave a parcel of realty to Julie valued at $197,500 (Oisha purchased the property five years ago for $83,000). a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $204,800. What is the amount of her gain or loss, if any, on the sale? Answer is complete but not entirely correct. $ 182.500 $ 121,800 a. Amount of taxable gift b. Amount of gain
- On 1 July 2000, Genevieve purchased a property in Sydney for $300,000 Her intention was to use it for income producing purposes and it was Immediately made available for rent. It remained available for rent until it was sold. She sold the property on 31 December 2019 for $600,000. Required: Based on this information, calculate the Net Capital Gain, if any, to be included in Genevieve's assessable income for year ending 30 June 2020Ashley inherited all of the property of her aunt Elena, who died last year. Elena’s adjusted basis for the property at the date of death was $1,200,000. The property's fair market value was $4,500,000 at the date of death and $4,800,000 six months after the date of death. Assume that an estate return is filed. What is Ashley’s adjusted basis of the property?Your client has occupied the residence she personally owns for four and a half years. The adjusted basis is $150,000. She sold the residence in May of 2018 for $310,000. Her selling expenses totaled $22,000. What is your clients recognized gain on the sale of this residence?