Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 12, Problem 32P
To determine
Determine AMT adjustment related to mine exploration expenditure and the sale of the land.
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Tina is tax resident in Country A. She acquired the following assets in 2017:
(a) two houses located in Country A. The cost of each house was $10 million.
(b) a house located in Country B. The cost of the house was $25 million.
(C) a motor vehicle for $3 million.
(D) a painting. She paid $2.5 million.
(E) Government bond issued by Country A for $500,000.
In 2021, she disposed of all the properties and received the following dispossl proceeds:
Painting - $1million
House in Country A - $25 million each
House in Country B - $35 million
Motor vehicle $3.5 million
Government bond- $1 million.
In Country A, full tax relief is available for the principal place of residence. A annual exemption of $500,000 is also available.
Tina incurred agency fees of $180,000 and $100,000 on the disposal of the houses located in Country A and Country B respectively.
Prior to disposing the house in Country B , she incurred repair expenses of $2 million. Tina also incurs a monthly…
Marcus sold a residential rental building for a gain of $30,000. He had originally purchased the building and placed it in service in March 2016 (for simplicity, the sale of land is not included in this question). The amount of depreciation allowed or allowable was $14,250. There were no other adjustments to the basis of the property, and Marcus did not sell any other property during the tax year. What is the amount and nature of Marcus's gain?
(a) $15,750 gain taxed as a long-term capital gain, and $14,250 gain taxed at a maximum of 25%.
(b) $15,750 gain taxed as a long-term capital gain, and $14,250 gain added to business income.
(c) $30,000 gain taxed as a long-term capital gain, and $14,250 gain taxed at a maximum of 25%.
(d) $30,000 gain taxed as a long-term capital gain, and $14,250 gain added to business income.
Tyler, a taxpayer, generates business income of $3000 in 2016. In 2017 he generates an NOL of $2000. In 2018 he incurs another NOL of $5000. In 2019 he generates a modest business income of $6000 and then in 2020 the COVID-19 pandemic results in an NOL of $13,000. In 2021 Tyler's business generates income of $13000. Assume that in all years Tyler adopts the NOL treatment that results in the earliest and greatest refund. Provide chronological analysis of Tyler's treatment of NOLs through 2021 and report NOL carry forward into 2022.
Chapter 12 Solutions
Individual Income Taxes
Ch. 12 - Kelly was promoted and received a substantial...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Can any nonrefundable credits, other than the...Ch. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - During the year, Rachel earned 18,000 of interest...Ch. 12 - Compute the 2019 AMT exemption for the following...Ch. 12 - In March 2019, Serengeti exercised an ISO that had...Ch. 12 - Prob. 21CECh. 12 - Prob. 22CECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26PCh. 12 - Arthur Wesson, an unmarried individual who is age...Ch. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Lisa records nonrefundable Federal income tax...Ch. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - In March 2019, Helen Carlon acquired used...Ch. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Christopher regularly invests in internet company...Ch. 12 - Sammy and Monica, both age 67, incur and pay...Ch. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Anh is single, has no dependents, and itemizes...Ch. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Jane and Robert Brown are married and have eight...Ch. 12 - Prob. 49PCh. 12 - Renee and Sanjeev Patel, who are married, reported...Ch. 12 - Prob. 51PCh. 12 - Lynn, age 45, is single and has no dependents. Her...Ch. 12 - Prob. 53PCh. 12 - Robert A. Kliesh, age 41, is single and has no...Ch. 12 - Prob. 55CPCh. 12 - Prob. 1RPCh. 12 - Prob. 2RPCh. 12 - Prob. 3RPCh. 12 - Prob. 1CPACh. 12 - Prob. 2CPACh. 12 - Carol reports taxable income of 48,000. Included...Ch. 12 - Prob. 4CPA
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