A SMSF acquired an investment property in the year 2000 and sold it for a total net capital gain of $300,000. What amount of tax will be payable on the capital gain? Please explain in detail
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- Mr. A sold his family home for P5,000,000. He bought the land for P1,000,000 and introduced improvements therein for a total cost of P2,000,000. What is the amount of capital gains tax due from the sale of the property?PT. A in the year 2020 reported an accounting profit before tax of IDR 800.000.000.000. The following information is related to the year 2020: The entity donated IDR 40.000.000.000 to the surrounding community PT A has interest income of IDR 100.000.000.000 which is subject to final tax of 20%. PT A purchased a fixed asset of IDR 200.000.0000, which is depreciated for 4 year for book purposes while for tax purposes is depreciated in 8 years (straight line with no residual value). PT A made a provision for uncollectible account receivable of IDR 10.000.000.000 which is not deductible for tax purposes Required: Prepare a schedule of the deferred tax (asset) and liability. assume there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit). Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020Land purchased for 60000 in 2000 and used in the taxpayers bsuiness is sold in the current year for 67000. The sale of the land results in: A. 7000 short term capital gain. B. 7000 long term capital gain. C. 7000 of ordinary income. D. 7000 of section 1231 gain. E. None of the above
- Which of the following is not true about capital assets? a.Individual taxpayers may deduct net capital losses of up to $3,000 per year. b.Real property used in a trade or business is not a capital asset. c.Net long-term capital gains are granted preferential tax treatment. d.Shares of stock held for investment are capital assets. e.Capital losses may be carried back for 3 years to offset capital gains in those years.Eli Incorporated, a calendar year taxpayer, purchased an apartment building on June 3, 2015 for $1,200,000, of which $200,000 was allocable to the land. The corporation sold the property on July 27, 2020. The corporation’s depreciation for the building for 2020 will be approximately: $13,894. b. $16,665. c. $18,180. d. $36,360. e. None of the other choices are correcin the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had accumulated depreciation of $160,000, for a new building having a fair market value of $650,000 In connection with the exchange, Keyaki paid $280,000 in cash. What is the tax basis of the new building?
- A taxpayer, who is single, purchased a house on May 10, 1988, for $175,000. During the years he owned the house, he installed a pool at a cost of $20,000 and built a new garage at a cost of $20,000. On October 12, 2022, he sold the house for $518,000 and paid a sales commission of $25,000. What is the (a) realized gain and (b) recognized gain on the sale of the house? (Show your calculations for partial credit review.)On August 15, 2021, Ms. Mones sold a 500-square meter residential house and lot for P3,000,000. The house was acquired in 2006 at P2,000,000. The Assessor's fair market values of the house and lot, respectively, wer P1,500,000 and P1,000,000. The zonal value of the lot was P5,000 per square meter. What is the capital gains tax? a.P150,000 b.P240,000 c.P180,000 d.P120,000PJ Limited purchased a machinery for $50,000 for its operations on 1 October 2015 and have been using it for income producing activities. In the current financial year (2019-2020), the machinery broke down and it was replaced with another machinery with the cost of $70,000 which could improve(?) the production, a feature that was not available in previous machinery. Explain in detail using relevant tax laws and cases whether this amount of $70,000 is deductible for MJ limited.Explain in detail about the deductible part of the scenario. Presenting the types of deductibles ;general and specific and using relevent laws and cases. Kindly use the four sections of: Facts of the scenario Relevant laws and cases Application of laws and cases Conclusion
- A property is purchased for $600,000 and sold for $900,000. Which of the following statements is most accurate? A.If the property is owned by an individual for 10 months the assessable capital gain is $150,000 B.If the property is owned by a superannuation fund for 15 months the assessable capital gain is $200,000 C.If the property is owned by a company for 10 months the assessable capital gain is $300,000 D.If the property is owned by an individual for 10 months the assessable capital gain is $300,000During the year, Irv had the following transactions: Long-term loss on the sale of business use equipment $7,000 Long-term loss on the sale of personal use camper 6,000 Long-term gain on the sale of personal use boat 3,000 Short-term loss on the sale of stock investment 4,000 Long-term loss on the sale of land investment 5,000 How are these transactions handled for income tax purposes?Several years ago, PTR purchased business equipment for $50,000. PTR’saccumulated book depreciation with respect to the equipment is $37,200, and itsaccumulated tax depreciation is $41,000.Required:a.Compute PTR’s book and tax basis in the equipment.b. Using a 21 percent tax rate, compute PTR’s deferred tax asset or liability (identifywhich) resulting from the difference between accumulated book and taxdepreciation.c. Compute PTR’s book and tax gain if it sells the equipment for $14,750.
