Ansel purchased raw land three years ago for $200,000 to hold as an investment. After watching the value of the land drop to $150,000, he decided to contribute it to Mountainside Developers LLC in exchange for a 5 percent capital and profits interest. Mountainside plans to develop the property

Q: Toni asked Adler, a real estate broker, exclusive agency to sell her farm house, and promised to pay…

A: Alder is not entitled to receive any commision because toni had found the buyer and made the…

Q: Lassen Corporation sold a machine to a machine dealer for $20,000. Lassen bought the machine for…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Jim has decided to contribute some equipment he previously used in his sole proprietorship in…

A: a)where Jim has  basis of an amount of  $100000 in a machine. The Fair Market Value of the property…

Q: Helen sold his personal residence for $900,000 after owning it for 3 months. His basis in the house…

A: As per the provisions of IRS rules 2021 long term capital gain tax is…

Q: In March of Year 2, Mason contributed the following two properties, which he acquired in February of…

A: Adjusted base value describes the amount a person has invested in his property. Expenses incurred…

Q: 1. In 2008, Barney purchased a holiday home near the beach for use by his family on weekends for…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Colin McGregor and his wife Alice own a house in Kelowna as well as a condo at Big White. They…

A: A capital gain is an increase in revenue from the sale of a capital asset that is considered…

Q: You manage a real estate investment company. One year ago, the company purchased 10 parcels of land…

A: calculation of above requirement with all necessary working are as follows

Q: A few years ago, Pat purchased Elysian Fields Farm for $1,100,000. The property included 120 acres…

A: Gain can be referred to the amount received from the sale or realization of an investment after…

Q: Biden sold an investment property that has a market value of $750,000 to his daughter for the amount…

A: The capital proceeds represent the proceed of CGT asset that is greater or lower than the market…

Q: Moustapha and Ava have owned X Corp as equal shareholders for the last five years. Due to unexpected…

A: Solution:- Given,  Moustapha and Ava have owned X Corp. as equal shareholders for the last 5 years…

Q: Steve orally agrees, at a family reunion picnic, to buy Bob's farm for $250,000, and all the terms…

A: The doctrine of promissory estoppel is a doctrine in contract law that stops a person from going…

Q: Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase…

A: The purchase of option is treated as a capital asset

Q: Kyle owns some land in Connecticut for which he paid $20,000 several years ago the property is now…

A: Fixed asset: It implies to a non-current asset, having an expected useful life of more than a year…

Q: A man purchased a house for P425,000. In the first month that he owned the house, he spent P75,000…

A: Following is the timeline of given case Month 0 - Purchased the house Month 1 - Spent on repairing…

Q: Fred is an investor in vacant land. When he thinks he has identified property that would be a good…

A: a. If Fred treats the right to refusal as an option to purchase the land, the asset on which he had…

Q: Johnson tells Davis that he paid $150,000 for his farm in 2013 and that he believes it is worth…

A: Whether D, the buyer of J's property, can successfully recover his $225,000 that he paid to J for…

Q: In February 2009, Mr. Alan Pickering contracted to purchase a mineral spring in the Missouri Ozarks.…

A: Given: In feb 2009, mineral spring is purchased based on Alan Pickering that includes the mineral…

Q: Professor Know All has invested his lifetime savings into the construction of two buildings, made up…

A: Taxation refers to the imposition of compulsory financial obligation by the government on…

Q: In 2018 Giles inherited a storefront from his uncle and so he left his job as a school librarian…

A: Revenue also known as sales revenue, which is defined as the amount of gross income that the…

Q: Liv wishes to acquire some undeveloped land as an investment. She is unable to pay the whole…

A: The purchase of option is treated as a capital asset

Q: Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jccasta has made…

A: Formula: Adjusted basis in the building = Apartment cost + Capital improvements - Depreciation…

Q: Joyce purchased the building in which their corporate office is housed on 1/1/21 for $4,700,000.…

A: Here discuss about the details of the options of purchase which was made either for the borrowing or…

Q: n 2020, Skylar sold an apartment building for $20,000 cash and a $300,000 note due in two years.…

A: Instalment sales method is used to recognize revenue when income and expenses are not acknowledged…

Q: Anton offered to sell his house to Bart who was interested in buying the same for P200,000.00. In…

A: If an offered is made to any person for any sell contract then it is must that the person should…

Q: On August 15, 2021, Ms. Mones sold a 500-square meter residential house and lot for P3,000,000. The…

A: A capital gains tax is a tax on the profit realized on the sale of a non-inventory asset. Given…

Q: Aaron and Melissa are looking to sell their house for $700,000. They purchased the house seven years…

A:

Q: A man purchased a house for P425,000. In the first month that he owned the house, he spent P75,000…

A: Selling value if sold immediately = 545,000 Value of house if not sold immediately = Present value…

Q: Sam owns 1,500 shares of Eagle, Inc. stock that he purchased over 10 years ago for $80,000. Although…

A: Sam owns 1,500 shares of Eagle, Inc.Cost of share = $80,000.Current Market Value = $52,000

Q: George is the owner of numerous classic automobiles. His intention is to hold the automobiles until…

A: Present value (PV) is defined as the current amount of future sum of money provide a particular rate…

Q: Perry purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the…

A: In the given question we need to compute the realized return for perry from following details.…

Q: Mr. Smith acquired a property consisting of one acre of land and a two-story building five years ago…

A: Answer: Given information: Mr. Smith acquired land and building for $100,000 five years ago. For…

Q: Maria purchased a new farm machine she will use for her second crop. She paid P30,000 for it and…

A: Depreciation is the allocation of cost of asset over the useful life of the asset. It can be charged…

Q: Brian acquired a rental house in 2004 for a cost of $80,000. Straight-line depreciation on the…

A: Installment Sale : in traditional system of sale , A sale is made for a lump sum amount due to which…

Q: house worth $700,000,

A: John's estate property : House worth - $700,000.00 Company stock - $1,00,00,000.00 Vehicle -…

Q: Heather owns a two-story building. The building is used 40% for business use and 60% for personal…

A: Gain or loss on insured assets:- Generally, businesses take insurance against their fixed assets…

Q: Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During…

A: The gain on sale is equal to sum of long term capital gain and income gain.

Q: In 2020, Marshall sold a residential house and lot located in Cotabato for P10,000,000 to his…

A: Selling price = P10,000,000 Fair market value = P15,000,000 CGT rate = 6% Capital gains tax =…

Q: Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on…

A: The capital gain reserve is only available for the upcoming 5 years. In other words, whether full…

Q: Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money…

A: Capital Gain = (Current value of stock - Initial value)/Initial value given: Current value of stock…

Q: Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made…

A: Depreciation: Decreasing value of fixed assets over its useful life period.

Q: Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey…

A: This question is asking the recognition of gain by partners or investors as they contributed capital…

Q: Joe purchases a block of land in the western suburbs of Adelaide as an investment on 31 march 1988…

A: Capital Gain Tax Capital gain tax is the tax which is levied on that particular amount which is the…

Q: John and Mary had the following transactions for 2020. Calulate net capital gain/loss, how much to…

A: calculation of above requirement are as follows

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.