Sean sells land to Eli, his brother, for the fair market value of $39,000. Six months later when the land is worth $45,000, Eli sells the property to his son, Jon, without gift tax. His son sells the land for $47,000. Sean’s adjusted basis for the land is $24,000 what is Jon’s recognized gain or loss on the sales?

Q: Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the…

A: Working Notes: 1. Selling Price = $52,200 * 8 = $417,600 2. Selling Expenses = $2,088 * 8 = $16,704…

Q: Demarco and Janine Jackson have been married for 20 years and have four children who qualify as…

A: Tax liability refers to the amount which a person or firm is liable to pay to the government. It is…

Q: t but now is having cash flow issues and decided not to wait any longer for market conditions to…

A: Since the land was purchased in 2009 and sold in 2021, therefore the loss will be long term capital…

Q: Dimas owns a parcel of land worth P5,000,000 based on the fair valuation in 2020. He inherited from…

A: Dimas owns a parcel of land. Based on the fair value of land = P5000000 He inherited from his father…

Q: What amount is included in the sibling's net income for tax purposes from the sale of the land?| $…

A: Given information is: H sold land to his sibling for $200,000. The land is used for farming and at…

Q: Jason inherited a piece of real estate from his father and later sells that real estate for…

A: Gain shall be the difference between sales price and the fair market value on the date of Jason’s…

Q: Sheila inherited 300 shares of stock, 100 shares of Magenta and 200 shares of Purple.  She has a…

A: Tax return refers to the process of documenting the financial reports which depicts the income,…

Q: Rob and Matt each own 50 percent of the Community Corporation, an S corporation with a calendar tax…

A: Given, Rob and Matt each own = 50% of an S corporation  Therefore, Share of Rob and Matt = 1 : 1…

Q: Calculate Karen’s realized and recognized gain or loss, and (2) explain

A:

Q: John purchased a house for $300,000. It is now worth $800,000 4 years later. Johns fiancee lived…

A: Profits from home sales are deemed capital gains and will be taxed at federal rates of 0%, 15%, or…

Q: Three years ago, Adrian purchased 100 shares of stock in X Corporation for $10,000. On December 30…

A: Introduction:- The loss must not be covered by insurance and must have occurred during the tax year…

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: Janna is a sole proprietor engaged in the distribution of real estate. During the year, he sold a…

A: For taxation purpose, sale proceeds shall be considered as fair market value Taxable amount = Fair…

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: In 2011, Avery bought a gold necklace for her own use at a cost of $8,000. In 2018 when the fair…

A: Formula: Taxable Gain = Selling price - Fair market value  Deduction of fair market value from…

Q: jordan sells 100 shares of TD bank on August 31. She purchased the shares for $500 and sold them for…

A: The taxable income is the earning which is subject to tax that is the taxpayer is liable to pay…

Q: Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its fair…

A: Introduction:Recognized Gain/Loss: It is difference between the cost price of the asset less its…

Q: Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the…

A: Recognized gain: It refers to the excess of sales proceeds from the sale of an asset over its actual…

Q: Betty and Lydia were co-owners of a parcel of land. Last January 31, 2001, when she paid her real…

A: Real- Estate - Real estate refers to a specific type of property such as land, a building, a house,…

Q: Oscar sells land (AB $100,000) to his son, Rob, for its FMV of $73,000. Which of the following…

A: Recognized Gain/Loss=Sale value-Cost of asset

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…

Q: H sold land to his sibling for $280,000. The land is used for farming and at the time of the sale…

A: The amount earned by an individual or company after deducting costs, allowances, and taxes is…

Q: Many years ago James and Sergio purchased property for $450,000. Although they are listed as equal…

A: Amount to be included in Sergio's estate if the title to the property was tenants in common: =…

Q: Margo receives a gift of real estate with an adjusted basis of $175,000 and a fair market value of…

A: Given data, Adjusted basis =$175,000 Fair market value =$100,000   Margo has generated zero…

Q: hat is the Amount Realized, Type and amount of Basis, and Gain or Loss of: Lois buys a herd of…

A: Step 1 The realization is the concept that realizable value of assets is accountable over the cost…

Q: Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both…

A: Section 1231 is used for depreciable real property for more than one year. Under this section gain…

Q: in

A:

Q: Richard donates publicly traded Gold Company stock with a basis of $1,000 and a fair market value of…

A: Please find the answer to the above question below:

Q: e sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Leron and…

A: Taxable Income Capital gains arising from the transfer of a long-term capital asset, such as an…

Q: Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the…

A: Capital gain refers to the amount that arises from the increase in the value of capital assets and…

Q: Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for…

A: Given: Sale value = $284,400 Expenses on sale = $19,908 Capital improvement = $8,532 Costs basis =…

Q: Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10…

A: Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10…

Q: This year, Leron and Sheena sold their home for $1,372,500 after all selling costs. They bought the…

A: Given :- Leron and Sheena sold their home for $1,372,500 after all selling costs. Leron and Sheena…

Q: 5. Yoda purchased a parcel of land three years ago for $35,000. In the current year, Count Dooku…

A: The answer is option (A.) [i.e, $45,000] Refer step 2 for explanation

Q: Sally owns real property for which the annual property taxes are $12,930. She sells the property to…

A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…

Q: What are the tax implications of the sale?

A: Solution:- Given, Chad takes a distribution of the CRP stock several years  Stock value = $500,000…

Q: Oscar, a single taxpayer, sells his residence of the last 10 years in January of 2019 for $190,000.…

A: Capital gain: When the taxpayer earned income from the transfer of assets than its chargeable under…

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: Cosmo and George are brothers. In 2021, Cosmo sells a parcei of Staten isiand land to George fer…

A: Purchase Price by Cosmo = 200,000 Selling Price to George = 180,000

Q: lyn owns land that she acquired three years ago as an investment for $250,000. She sells the land…

A: Concept of doctrine of Capital recovery

Q: Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for…

A: Calculation of realized gain, recognized gain and adjusted basis of new residence:Answer: Realized…

Q: Kevin purchased a house 20 years ago for $100,000 and he has always lived in the house. Three years…

A: A. $ 0

Q: Timothy and Cleo are married (file a joint return) and purchased rental property in 2005 for…

A: Homeowner's Exclusion - The gain on sale of taxpayer's principal/main residence is subject to a…

Q: Years ago, KR bought a parcel of land in Muntinlupa for only PhP65,000. He donated the land to his…

A: Donor Taxes Donor Taxes which is simply describe as any kind of Donations / gift which are made to…

Q: liana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother,…

A: Unrealized Gain- An unrealized gain is the amount of profit earned by an investor by holding the…

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

A:

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: On the formation of X Corp, Moustapha transfers land with a basis of $40,000 and a FMV of $60,000 in…

A: Tax Basis For Calculating the tax consequences of the assets or property which are taken consider…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.