Exercise 13-30 (Algorithmic) (LO. 3)Juliana purchased land three years ago for $55,000. She made a gift of the land to Tom, her brother, in the currentyear, when the fair market value was $77,000. No Federal gift tax is paid on the transfer. Tom subsequently sells theproperty for $69,300.a. Tom's basis in the land is ssale.and he has a realizedof $and he has a realizedon theb. Assume, instead, that the land has a fair market value of $49,500 on the date of the gift, and that Tom sold theland for $47,025.Tom's basis in the land is ssale.on the

The following formula used as follows:-Realized Capital Gain arrises where Fair value > Purchased…

Answered: Juliana purchased land three years ago…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

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Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 37CE

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Exercise 14-22 (LO. 3) Juliana purchased land three years ago for $50,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $70,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $45,000 on the date of the gift, and that Tom sold the land for $43,000. Tom's basis in the land is $ and he has a realized of $ on the sale.
please dont provide answer in image format thank you On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? Note: Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. a. Land sold for $32,000
Angelina gave a parcel of realty to Julie valued at $167,500 (Angelina purchased the property five years ago for $71,000). Required: a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $174,000. What is the amount of her gain or loss, if any, on the sale? a. Amount of taxable gift b. Amount of gain
Problem 13-75 (LO. 6, 9) Tom Howard and Frank Pérez are good friends (and former college roommates). Each owns investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make their lives easier, they decide to exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). Tom's property is subject to a mortgage of $12,000 that will be assumed by Frank. If an amount is zero, enter "0". a. What are Frank's and Tom's recognized gains? Frank's recognized gain is $ , and Tom's recognized gain is $ b. What are their adjusted bases? Frank's adjusted basis is $ and Tom's adjusted basis is $ c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom…
Fred and Sarajane exchanged land in a qualifying like-kind exchange. Fred gives up land with an adjusted basis of $11,000 (fair market value of $16,000) in exchange for Sarajane's land with a fair market value of $12,000 plus $4,000 cash. How much gain should Fred recognize on the exchange? a.$4,000 b.$5,000 c.$0 d.$1,000 e.None of these choices are correct
Problem 15-38 (LO. 2, 5) Tom Howard and Frank Peters are good friends (and former college roommates). Each owns investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make their lives easier, they decide to exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). Tom's property is subject to a mortgage of $12,000 that will be assumed by Frank. If an amount is zero, enter "0". b. What are their adjusted bases?Frank's adjusted basis is $fill in the blank 01a88e015fb6072_1, and Tom's adjusted basis is $fill in the blank 01a88e015fb6072_2. c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom would use…
Juliana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526. a. Tom's basis in the land is $ 90,100 V and he has a realized gain -v of $ 23,246 x on the sale. b. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036. Tom's basis in the land is $ 113,256 x and he has a realized loss V of 12,614 X on the sale.
24. Dan owned a small rental property, which was condemned by the county to expand a local park. His adjusted basis in the property was $40,000 and he received a payment of $75,000 from the county. A year later he purchased a similar piece of real estate for $70,000. What is Dan's recognized gain on the involuntary conversion of his rental property? a. 0 b. $35,000 c. $30,000 d. $10,000 e. $5,000
N2 Linton transferred his fixed annuity to his sister for $1. He had paid $25,000 into the contract and at the time of the transfer, the annuity's surrender value had grown to $40,000. How much, if any, of this transfer is taxable to Linton? a. $0 b. $1 c. $15,000 d. $40,000
Juliana purchased land three years ago for $79,300. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $111,020. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $99,918. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $71,370 on the date of the gift, and that Tom sold the land for $67,802. Tom's basis in the land is $ and he has a realized of $ on the sale.
Melba purchases land from Adrian. Melba gives Adrian $355,800 in cash and agrees to pay Adrian an additional $533,700 one year later plus interest at 7.5%. a. What is Melba's adjusted basis for the land at the acquisition date? $ 899,500 x Feedback vCheck My Work Realized gain or loss is the difference between the amount realized from the sale or othe disposition of property and the property's adjusted basis on the date of disposition. Ther it is important to determine the correct adjusted basis for the property. b. What is Melba's adjusted basis for the land one year later? 899,500 x Feedback Check My Work Incorrect Feedback Check My Work Incorrect
Judy owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. On March 15, Judy sells her land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000. What is the amount realized? a.) $1,370,000 b.) $1,720,000 c.) $1,820,000 d.) $1,250,000

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