Q: 8. Elvin, a single taxpayer 45 years of age,
8. Elvin, a single taxpayer 45 years of age, sells his residence in 2016. He receives $35,000 in cash, and the buyer assumes his $100,000 mortgage. Elvin also pays $8,100 in commissions and transfer c...
See AnswerQ: In 2016, Michael has net short-term capital losses of
In 2016, Michael has net short-term capital losses of $1,500, a net long-term capital loss of $27,000, and other ordinary taxable income of $45,000. a. Calculate the amount of Michael’s deduction for...
See AnswerQ: Amy is a calendar-year taxpayer reporting on the cash basis
Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she should treat the following items for 2016: a. She makes a deductible contribution to an IRA on April 15, 2017. b....
See AnswerQ: William sold Section 1245 property for $25,000 in 2016
William sold Section 1245 property for $25,000 in 2016. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000. a. Calculate the adjusted bas...
See AnswerQ: An office machine used by Josie in her accounting business was completely
An office machine used by Josie in her accounting business was completely destroyed by fire. The adjusted basis of the machine was $8,000 (original basis of $14,000 less accumulated depreciation of $6...
See AnswerQ: Rebecca has a $6,400 casualty loss, before any
Rebecca has a $6,400 casualty loss, before any limitations, as a result of the complete destruction of personal-use property. She also receives $1,200 of insurance proceeds for the destruction of a se...
See AnswerQ: Carey exchanges real estate for other real estate in a qualifying like
Carey exchanges real estate for other real estate in a qualifying like-kind exchange. Carey’s basis in the real estate given up is $120,000, and the property has a fair market value of $165,000. In ex...
See AnswerQ: Teresa’s manufacturing plant is destroyed by fire. The plant has an
Teresa’s manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and Teresa receives insurance proceeds of $410,000 for the loss. Teresa reinvests $420,000 in a replacem...
See AnswerQ: Larry Gaines, a single taxpayer, age 42, sells his
Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2016, for $148,000. He lived in the house for 7 years. The expenses of the sale are $9,000, and he has made capita...
See AnswerQ: On July 1, 2016, Ted, age 73 and single
On July 1, 2016, Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted’s basis in his residence is $42,000. The expenses associated with the sale of his home tota...
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