Mr. Briggs purchased an apartment complex January 10, 2016 for $6,000,000 with 20% of the price allocated to l

Q: At the time of his death in 2021, Donald owned a farm (a qualified, closely held business) with a…

A: A special use valuation method comes under section 2032A which explains that real property is to be…

Q: Jacob purchased business equipment for $89,100 in 2017 and has taken $53,460 of regular MACRS…

A: Income tax: It is the tax levied by the federal government on the income earned by individuals,…

Q: Franco converted a building from personal to business use in May 2018 when the fair market value was…

A: Solution:- Given, Franco converted a building from personal to business use in May 2018  The fair…

Q: 2020. The corporation’s depreciation for the building for 2020 will be approximately:

A:

Q: Form it instead assumes a $100,000 recourse loan on Vee’s land, what are the realized and recognized…

A: Realized value  were the value that is adjustable . For Frat $740000 For Van $ 660000 * Recognised…

Q: On August 15, 2021, Bob bought a rental house. The property cost $310,000. Of this, the land was…

A: As per GDS MACRS method, for residential rental property- 27.5 year, straight line class with mid…

Q: Alex Bodvin acquires a residential rental property on June 1, 2021 at a cost of $450,000. Of this…

A: Here discuss about the details of the calculation of the capital cost allowance which are involved…

Q: Randall Corporation (a C Corporation) acquires an apartment building for $200,000 on September 1,…

A: As per IRS rules you can depreciation apartment builidng used for business as…

Q: If Rearden sold the building on April 1, 2015 for $920,000 cash, what is the amount of gain or loss…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On November 22, 2020, Ms. Wilma Vander purchased an automobile to be used exclusively in her newly…

A: The cost of the automobile is $45,000 before GST and it is a class 10.1 vehicle. Hence, the maximum…

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: Franco converted a building from personal to business use in May 2018 when the fair market value was…

A: Net profit/loss on an asset is computed after making an adjustment for accumulated depreciation to…

Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…

A: Solution- Step(1)-Alphonos purchased office building in 2010=$60000Machinery in september of…

Q: Zeke, a wealthy farmer, constructed a barn in March 1986 for $10,000. He claimed $6,500 of…

A: The Internal Revenue Services provide a code for tax treatment of the capital gains or…

Q: On January 4, 1986, Rita Racksaw purchased a warehouse for $150,000. In 2020, she sold the warehouse…

A: Section 1231 is formulated for the real and depreciable business properties. Section 1231…

Q: ob purchased land as an investment on January 12, 2018, for $80,000. On January 31, 2021, Job sold…

A: Recognized gains and realized gains are two types of capital gains that indicate profits generated…

Q: Ansel purchased raw land three years ago for $200,000 to hold as an investment. After watching the…

A: It is given that Ansel purchased a raw land as investment for $200,000 three ago now Ansel has…

Q: A sold his ring, a capital asset, on February 14, 2018. The ring was acquired on January 14, 1980 at…

A: The correct calculation for the above question is given in the following steps for your reerence

Q: rtgage value - P12,000,000 Independent appraiser's value BIR -P10,000,000 Commisioner's Zonql…

A: Capital gain tax refers to the mandatory tax levied by the government over the profit made by the…

Q: Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction…

A: The rate of depreciation will be 3.636% on the total value of the asset on the straight-line method.…

Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…

A: In the above question we have to calculate Adjusted Gross Income for 2018 for Alphonso with the help…

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.

Q: On January 1, 2011, Sam Johnson acquired depreciable real property for $50,000.  He used…

A: Capital gain The amount of increment in the value of capital assets and will be realized on account…

Q: On January 1, 2011, Sam Johnson acquired depreciable real property for $50,000.  He used…

A: Solution: Coast of the property = $50,000 Accumulated depreciation for 9 years as on jan 3, 2020 =…

Q: Sid bought a new $1,320,000 seven-year class asset on August 2, 2020 On December 2, 2020, he…

A: Cost recovery is known as the concept which provides deduction or decreases limit in the desired…

Q: Brian acquired a rental house in 2003 for a cost of $80,000. Straight-line depreciation on the…

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…

A: Alphonso Purchased  Office building in 2010 = $650000 Machinery in September of 2015 = $60000 In…

Q: On July 16, 2019 Logan acquires land and a building for $500,000 to use in his sole proprietorship.…

A: (a) On the acquisition date  The adjusted basis for the land and building is  Land = purchase price…

Q: Sid bought a new $ 1,320,000 seven-year class asset on August 2, 2019. On December 2, 2019, he…

A: Solution:- Calculation of the maximum cost recovery deduction for the purchases for 2019 as follows…

Q: Stan owned machinery which had been acquired at a cost of $250,000. During 2020, the machinery was…

A: acquired at a cost of $250,000.  adjusted basis of $200,000. The insurance proceeds awarded to Stan…

Q: acob purchased business equipment for $144,900 in 2018 and has taken $86,940 of regular MACRS…

A: Solution Given Cost of business 144900 Depreciation 86940 Sale price 65205…

Q: Tina is tax resident in Country A. She acquired the following assets in 2017: (a) two houses…

A: SOLUTION CAPITAL ASSETS = TWO HOUSES OF COUNTRY A + TWO HOUSES OF COUNTRY B + MOTOR VEHICLE +…

Q: Determine the total deductions in calculating taxable income related to the machine for 2020…

A: According to Section 179, we can claim complete machine value for depreciating.

Q: Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for…

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

Q: On February 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Allie purchased an office building on October 23, 2018 for $150,000. She uses this building in her…

A: As per MACRS depreciation table, office building qualifies for 39 year, straight line class. As per…

Q: In 2017, Grant purchased land for $107,550 for use in his business. He sold it in 2020 for $121,150.…

A: Generally, if you hold the asset for more than one year before you dispose of it, capital gain or…

Q: Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity…

A: Passive activities: Activities which include no material participation. Example: Equipment leasing

Q: On July 16, 2020, Logan acquires land and a building for $500,000 to use in his sole proprietorship.…

A: The adjusted basis for land and building at the acquisition date is Land : $100,000 Building :…

Q: Your client has occupied the residence she personally owns for four and a half years. The adjusted…

A: Amount realized by Kitty from sale of her house = $375,000 Selling expenses borne by her = $22,000…

Q: Max disposed of two residential properties during the year. The details of the dispositions are as…

A: Basic assumption:-    The house sold by Max is his main house and he…

Q: Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on…

A: The capital gain reserve is only available for the upcoming 5 years. In other words, whether full…

Q: s in his business

A: As per IRS rules you can depreciation apartment building used for business as under - Cost of…

Q: Dorothy acquired a 100% interest in two passive activities: Activity A in January 2015 and Activity…

A: Passive Activities are the business functions in which the investor is not significantly involved,…

Q: Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for…

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

Q: Anton purchases a building on May 4, 2002, at a cost of $370,000. The land is properly allocated…

A: Unrecaptured section 1250 gain It is the income tax provision applicable to sale of depreciable real…

Q: Postum Partnership purchases a building in 2017 for $250,000. It deducts $5,600 in depreciation on…

A: Formulas: Gain = Sale value - Book value

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.