CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
41st Edition
ISBN: 9781337389518
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 7, Problem 38P
To determine
Calculate the itemized deduction of Person H and also ascertain Person H’s AGI.
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Peter purchased a rental property in 2010 at a cost of $650,000 ($460,000 for the building and $190,000 for the land). He had to pay the notary ($1,150), the inspection ($780) and the “Welcome Tax” ($7,100). The rental property was profitable for all years. As of January 1, 2020, the UCC of Class 1 was $427,330.
Peter sold the property in 2020. The selling price was $(870,000) (70% allocated to the building; 30% to the land). When selling the property, James had to pay for the evaluation ($350) and the commission to the real estate agent ($20,500).
Required:
a) Calculate the taxable capital gain on the sale of the property.
b) Calculate the recapture of CCA.
Heather owns a two-story building. The building is used 40% for business use and 60% for personal use. During 2022, a fire caused major
damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the
business portion. At the time of the fire, the building had a fair market value of $900,000. Immediately after the fire, the fair market value
was $200,000. The Insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market
value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed.
The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed.
If an amount is zero, enter "0".
a. Determine the business and personal gain or loss in regard to the building and its contents.
Cost of building
Less: Depreciation
Adjusted basis…
Heather owns a two-story building. The building is used 40% for business and 60% for personal use. During 2020, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the business portion. At the time of the fire, the fair market value was $900,000. Immediately after the fire, the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use asset had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed. If Heather's AGI is $100,000 before considering the effects of the fire, determine her itemized deduction as a result of the fire. Also determine Heather's AGI
Chapter 7 Solutions
CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Many years ago, Jack purchased 400shares of Canary...Ch. 7 - Scan is in the business of buying and selling...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Prob. 16DQCh. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prob. 19DQCh. 7 - Prob. 20DQCh. 7 - Last year Aleshia identified 15,000 as a...Ch. 7 - Prob. 22CECh. 7 - Prob. 23CECh. 7 - Prob. 24CECh. 7 - Prob. 25CECh. 7 - Prob. 26CECh. 7 - Prob. 27CECh. 7 - Prob. 28CECh. 7 - Prob. 29CECh. 7 - Prob. 30CECh. 7 - Prob. 31CECh. 7 - Prob. 32PCh. 7 - Monty loaned his friend Ned 20,000 three years...Ch. 7 - Sally is in the business of purchasing accounts...Ch. 7 - Prob. 35PCh. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Prob. 39PCh. 7 - Prob. 40PCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Prob. 47PCh. 7 - Prob. 48PCh. 7 - Prob. 49PCh. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Prob. 53CPCh. 7 - Prob. 54CPCh. 7 - Prob. 1RPCh. 7 - Prob. 2RP
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