Lily exchanges land used in her business for a different parcel of land to be used in her business. Her adjusted basis for the land is $325,000 and the fair market value is $310,000. The fair market value of the new parcel of land is $300,000. In addition, Lily receives cash of $10,000. Calculate Lily’s realized and recognized gain or loss and her adjusted basis for the assets received.

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A: There are two questions asked by you but as per our protocol we are authorized to answer to solve…

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A: The profit made on the sale of an asset such as stocks, bonds, or real estate is referred to as…

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A: Given information:   Fair Market Value - $300,000 The sale price of the duplex - $312000

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A: GIVEN   On September 30 of last year, Rex received some investment land from Holly as a gift.…

Q: .  Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000…

A: Given information:   Adjusted basis - $279,000 Fair Market Value - $300,000

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A: As per IRS rules for installment sales, tax is levied on the gain on every year's collection. Gain…

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A: Gain or loss on disposal of a property arises in case of sale of the property. A gain arises in case…

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A: An funding is usually the outlay of a few capital today—time, effort, money, or an asset—withinside…

Q: Kase, an individual, purchased some property in Potomac, Maryland, for $150,000 approximately 10…

A: In the United States, a like-kind exchange, also known as a 1031 exchange, is a transaction or…

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A: Memorandum of gain recognition of O & L   Mr. O & M L Cordoncillo Denver, U-SA Sub:…

Q: in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3,…

A: GENERAL POINTS -   ** UPON THE SALE OF ASSET IF THE SALE PROCEEDS EXCEED THE COST OF ASSET THEN THE…

Q: How would you report these two assets on tax return?

A: Asset are the inflow of economic benefit which helps to generate revenue for the business. It is…

Q: Bernadette sold her home. She received cash of $40,000, the buyer assumed her mortgage of $180,000,…

A: This pertains to determination of gain and finding the character of that gain. Bernadette has sold…

Q: Munster trades land held for 3 years, worth $25,000 in which she has a basis of $18,000. She…

A: An exchange of property which is done through exchanging or giving up a similar kind of property is…

Q: Juliana purchased land three years ago for $73,900. She gave the land to Tom, her brother, in the…

A: Tom's basis in the land = Cost or Fair market value; whichever is lower

Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following…

A:

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Adjusted basis - $86,000 Fair Market Value - $300,000

Q: the capital gains tax due is?

A: Capital gains tax is the tax which is computed on the capital assets which has been sold during the…

Q: Ava exchanges land used in her business with Gail for another parcel of land. The basis of Ava's old…

A: Formula: Gain on land exchanged = Fair market value - basis of land

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A: Unrealized gains and losses: These are gains and losses which are unrealized and are the result of…

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A:

Q: On May 20, 2019, Jessica purchased land for $106,060 to use in her business. She sold it on May 21,…

A: In above case assets is held for more than 1 year and sell thereafter.

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

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A: Effect in the books of Sarah

Q: John Travis owns a depreciable property with a FMV of $295,000. Its capital cost is $350,000 , the…

A: Depreciable property means the capital tangible fixed asset which is accounted in books of accounts…

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A: For real estate property Mid - month convention ( one half of the month in which property is…

Q: During the current year, Ethel exchanges a business land for different business land in a like-kind…

A: Realized gain: A realized gain results from selling an asset at a price higher than the original…

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: There is no gain or loss as the fair market value of both duplex and triplex.

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Adjusted basis for triplex ( in the hands of Carl) $279,000 Fair Market Value -…

Q: Many years ago James and Sergio purchased property for $945,000. Although they are listed as equal…

A: Partnership agreements come in a variety of forms. For example, in a partnership, all partners…

Q: has a $25,000 basis, and receives $4,000 (cash), Land $30,000 FMV and basis of $14,000 What is her…

A:

Q: Abby's home had a basis of $360,000 ($160,000 attributable to the land) and a fair market value of…

A: Given data, Abby's home had a basis of $360,000 ($160,000 attributable to the land) and a fair…

Q: Charles exchanged land used in his business plus 26,000 in cash for like-kind real estate. Charles…

A: Following is the recognized gain and new tax basis will be as follows

Q: Mason buys real estate for $1,500,000 and lists ownership as follows: “Mason and Dana, joint tenants…

A: a. Where  the co-owners obtain the property from another property holder as a gift, then every owner…

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Adjusted basis - $86,000 Fair Market Value - $300,000

Q: During the current year, Daniel James exchanges land used in his business for a new parcel of land.…

A: As, the land is being exchanged for land, so it will be considered as a like-kind exchange. Whenever…

Q: Dan receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is…

A: Given:  Basis of the duplex land - $110,000 Fair market value (FMV) of land & building -…

Q: Luke wants to exchange his land worth $190,000 and stock worth $10,000 for land with a fair value of…

A: Property tax gain is the tax charged by the central government and state government on the gain on…

Q: 0. If an amount is zero, enter "0". a.  What is Lisa's realized and recognized gain or loss? Lisa…

A:

Q: a) Arijit sold a piece of land for $ 110,000 cash. Arijit originally purchased the land for 68,000…

A: Gain or (loss) = selling price  - purchase price

Q: Isaac buys a piece of land as an investment, paying $20,000. Three years later he trades the land to…

A: The adjusted basis of an asset is generally its purchase price plus capital improvements and costs…

Q: What is Barbara's recognized gain or loss in the current year related to this exchange?

A: Given facts:  Fair value of old property = $330,000  Adjusted basis of old property = $275000  Fair…

Q: Clara received from her Aunt Sona property with a FMV at the date of the gift of $30,000. Aunt Sona…

A: Gift transferred from Clara to her aunt Sona, will not be treated as transfer in the sense of…

Q: Shari exchanges an office building in New Orleans (adjusted basis of $500,000) for an office…

A: Realized gain = value of office building in Baton Rouge - value of office building in Orleans…