Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $52,200 each. Dexter's basis in each lot sold is $36,540, and he incurs total selling expenses of $2,088 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $ 488,000 x , of which $ 7,200 x is classified as ordinary income and 47,200 x as a capital gain. Feedback
Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $52,200 each. Dexter's basis in each lot sold is $36,540, and he incurs total selling expenses of $2,088 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $ 488,000 x , of which $ 7,200 x is classified as ordinary income and 47,200 x as a capital gain. Feedback
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 24CE
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