Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and accumulated depreciation was $27,000 on the date of sale. He collects only the $100,000 down payment in the year of sale. a. If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain. $fill in the blank a97015048fb601f_1 b. Assuming Steve uses the installment sale method, complete Form 6252 for the year of the sale.
Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and
a. If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.
$fill in the blank a97015048fb601f_1
b. Assuming Steve uses the installment sale method, complete Form 6252 for the year of the sale.
If an amount is zero, enter "0". Enter all amounts as positive numbers. Round all decimals to four places and any dollar amount to the nearest dollar.
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