23 Which is TRUE in family home? S1 – If the decedent has five houses, the heirs may choose to claim from among the houses a family home S2 – A single person living alone can claim family home S3 – If a legally separated person lives with his minor children, the estate may claim family home S4 – The family home is the higher of the actual value but not to exceed Php 10,000,000. Group of answer choices S2 only S3 and S4 only S3 only All are false S2 and S3 only

23 Which is TRUE in family home? S1 – If the decedent has five houses, the heirs may choose to claim from among the houses a family home S2 – A single person living alone can claim family home S3 – If a legally separated person lives with his minor children, the estate may claim family home S4 – The family home is the higher of the actual value but not to exceed Php 10,000,000. Group of answer choices S2 only S3 and S4 only S3 only All are false S2 and S3 only

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter11: Investor Losses

Section: Chapter Questions

Problem 35P

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Which is TRUE in family home? S1 If the decedent has five houses, the heirs may choose to claim from among the houses a family home S2 A single person living alone can claim family home S3 If a legally separated person lives with his minor children, the estate may claim family home S4 The family home is the higher of the actual value but not to exceed Php 10,000,000.
V1. Ted Barnes has 100 acres of unimproved land, which he actively farms. Its cost basis is $10,000 but its fair market value on December 31, 2022 appears much higher. Ted trades it to Fred Lawyer for a city apartment building worth $70,000, which has a basis to Fred Lawyer of $30,000. None of the property is mortgaged, and Lawyer claimed straight-line deprecation on the apartment. What is Lawyer’s realized gain and loss on the exchange? What is Lawyer’s recognized gain or loss on the exchange? What is Lawyer’s basis for the farmland acquired?
Yas.8 Eve acquired a personal residence in 20x0 for $700,000. In January, 20x5, when the fair market value was $800,000, she converted the residence to rental property. (Ignore any allocation to land.) a) Calculate the amount of cost recovery that can be taken in 20x5. b) What would your answer be if the property were worth only $50,000 in 20x5?
B20. Your client, James, is the 100% owner Best Corporation, Inc., a C Corporation. James wants to sell a building he owns to Best Corporation for its fair market value (FMV) of $100,000. The property’s adjusted basis is $150,000. James asks you if he will be able to deduct the $50,000 loss on the property if he sells it to Best. Can James recognize the loss? a. Yes, because it is being sold at its FMV. b. Yes, because individuals and corporations are never considered elated parties for purposes of loss disallowance. c. No, because James and Best are considered related parties for purposes of loss disallowance under IRC 267. d. No, because James and Best are considered related parties for purposes of loss disallowance under IRC 318. e. No, not unless James and Best sign an agreement stating that the sale is bona fide. If they do so, James will be allowed to deduct the loss.
Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market value of $160,000 for a rental house at the mountains with a fair market value of $148,000 and cash of $12,000. What is Angela’s recognized gain or loss? Group of answer choices $148,000 ($20,000) $12,000 $0
17.During 2022, Ebenezer (single) decided to sell his long-time personal residence. Hepurchased the home in 1990 for $190,000 and spent $20,000 to renovate the basement. He sold the house in May for $500,000. Broker's commissions and other selling expenses amounted to $30,000. Since he was 67, he decided to rent an apartment. What is his recognized gain? a. $0.b. $10,000.$260,000.d. $310.000.
16 Nicanor met Inday in 2000. They married the following year. By 2005, Inday stayed home to take care of their two children. In 2021, Nicanor died. Inday provided the following list of properties acquired during their marriage so you can help them file the return and pay the corresponding estate tax, if any: PROPERTIES Family home: Zonal value of land - Php 5,000,000 Assessed value of land – Php 3,000,000 Assessed value of house – Php 5,000,000 Appraiser’s value – Php 20,000,000 1,000 Shares in ABC Corp. a listed company: Opening price – Php 900 Closing price – Php 1,200 Lowest Quote – Php 800 Highest Quote – Php 1,500 Average Value - Php 1,000 2,500 Shares in XYZ Corp. an unlisted company inherited by Nicanor from his father: Audited Financial Statements of XYZ Corp. disclosed the following: Assets – Php 10,000,000 Liabilities – Php 4,000,000 Outstanding shares of stocks – 10,000 Par value Php 100.00 per share Jewelry of Inday (wife) Value at time of…
Problem 13-86 (LO. 8) Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10 years. Maria, his spouse, has lived there with Pedro for the full 10 years. He sells the house for a realized gain of $340,000. If an amount is zero, enter "0". a. Can Pedro use the § 121 exclusion if he and Maria file a joint return? If Pedro can use the § 121 exclusion, the maximum eligible amount of § 121 exclusion (before any limitations) is $fill in the blank e5f27fff7ffcfcb_2. Their realized gain is $fill in the blank e5f27fff7ffcfcb_3 and the recognized gain is $fill in the blank e5f27fff7ffcfcb_4. b. Can Pedro use the § 121 exclusion if he files a separate return? What is the maximum eligible amount of the exclusion?$fill in the blank 270badf95f9402e_2 The recognized gain is $fill in the blank 270badf95f9402e_3. c. Assume instead that the realized gain is $550,000 and a joint return is filed. The recognized gain is $fill in…
(J) please answer asap... Melissa purchased a beach condo for $2,000,000.00. Shortly after she purchased the condo, Melissa changed the title on the condo to joint tenancy with right of survivorship, naming her son James as a joint tenant. James paid nothing to Melissa. At Melissa’s death, how much of the condo’s value will be included in her gross estate?
Ma1. Part 3: Spouse purchased Blackacre, worth $200,000.00, as tenants by the entirety. Spouses purchased Blackacre in 1990. Upon the death of one of the spouses. a. Does an interest in property pass from the decedent o surviving spouse? b. What is the amount of the marital deduction? Part 4: Decedent leaves property in trust, the income to be paid to parent for parent’s life, and at parent’s death, the corpus to be distributed to decedent’s spouse or spouse estate. Does the transfer quality for a marital deduction?
LO.2, 3, 7, 11 Kristin Graf (123 Baskerville Mill Road, Jamison, PA 18929) is trying to decide how to invest a 10,000 inheritance. One option is to make an additional investment in Rocky Road Excursions in which she has an at-risk basis of 0, suspended losses under the at-risk rules of 7,000, and suspended passive activity losses of 1,000. If Kristin makes this investment, her share of the expected profits this year will be 8,000. If her investment stays the same, her share of profits from Rocky Road Excursions will be 1,000. Another option is to invest 10,000 as a limited partner in the Ragged Mountain Winery; this investment will produce passive activity income of 9,000. Write a letter to Kristin to review the tax consequences of each alternative. Kristin is in the 24% tax bracket.
LO.1 Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella 150,000 and assume her mortgage on the land for 100,000. Under the second option, Taylor will give Ella 250,000 and she will immediately pay off the mortgage. Taylor wants his basis for the land to be as high as possible. Given this objective, which option should Taylor select? Explain.