Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 17, Problem 4CPA
To determine
Calculate net Section 1231 gain or loss in year 6.
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Mike sold the following personal use property during the current year:
Painting
Stamp collection
Outboard motor
Antique desk
Sales Price
Cost
$2,500
$ 800
600
1,200
900
100
1,300
1,950
What is his taxable capital gain, net of allowable capital losses, for the current year?
$625.
$650.
$325.
$750.
13
Alma sells the following depreciable assets from her sole proprietorship: Asset Cost Office furniture $10,000 Age Gain/Loss 4 years ($2,400) Truck $2,000 5 years 3,100 Bakery equipment $25,000 9 months (4,500) What should Alma report on her income tax return relative to these property transactions? a. $3,800 capital loss b. $3,100 Section 1245 recapture; $2,400 Section 1231 loss; $4,500 ordinary loss c. $3,800 ordinary loss d. $700 Section 1231 gain; $4,500 ordinary loss e. None of the above
Angelina gave a parcel of realty to Julie valued at $167,500 (Angelina purchased the property five years ago for $71,000).
Required:
a. Compute the amount of the taxable gift on the transfer, if any.
b. Suppose several years later Julie sold the property for $174,000. What is the amount of her gain or loss, if any, on the sale?
a. Amount of taxable gift
b. Amount of gain
Chapter 17 Solutions
Individual Income Taxes
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - A depreciable business dump truck has been owned...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Prob. 11DQCh. 17 - Prob. 12DQCh. 17 - Prob. 13DQCh. 17 - Prob. 14DQCh. 17 - Prob. 15DQCh. 17 - Prob. 16DQCh. 17 - Prob. 17DQCh. 17 - Prob. 18DQCh. 17 - Prob. 19DQCh. 17 - Prob. 20DQCh. 17 - Prob. 21CECh. 17 - Prob. 22CECh. 17 - LO.3 Renata Corporation purchased equipment in...Ch. 17 - LO.3 Jacob purchased business equipment for 56,000...Ch. 17 - Sissie owns two items of business equipment. Both...Ch. 17 - Prob. 26CECh. 17 - Prob. 27CECh. 17 - LO.4 Enzo is a single taxpayer with the following...Ch. 17 - Prob. 29CECh. 17 - Prob. 30CECh. 17 - LO.1, 2 Jenny purchased timber on a 100-acre tract...Ch. 17 - Prob. 32PCh. 17 - LO.2 A sculpture that Korliss Kane held for...Ch. 17 - Prob. 34PCh. 17 - Prob. 35PCh. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38PCh. 17 - Prob. 39PCh. 17 - Prob. 40PCh. 17 - Prob. 41PCh. 17 - Prob. 43PCh. 17 - Joanne is in the 24% tax bracket and owns...Ch. 17 - Prob. 45PCh. 17 - Prob. 46PCh. 17 - Prob. 47PCh. 17 - Prob. 48PCh. 17 - Prob. 49PCh. 17 - Jasmine owned rental real estate that she sold to...Ch. 17 - Prob. 51PCh. 17 - Prob. 52PCh. 17 - Prob. 53PCh. 17 - Prob. 54PCh. 17 - Jay sold three items of business equipment for a...Ch. 17 - Prob. 1RPCh. 17 - Prob. 2RPCh. 17 - Prob. 3RPCh. 17 - Prob. 4RPCh. 17 - Prob. 1CPACh. 17 - Prob. 2CPACh. 17 - Jerry uses a building for business purposes. The...Ch. 17 - Prob. 4CPACh. 17 - Prob. 5CPACh. 17 - Prob. 6CPACh. 17 - Wally, Inc., sold the following three personal...Ch. 17 - Net Section 1231 losses are: a. Deducted as a...Ch. 17 - Prob. 9CPACh. 17 - Prob. 10CPA
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- Wally, Inc., sold the following three personal property assets in year 6: What is Wallys Section 1245 recapture in year 6? a. 500 loss b. 300 gain c. 800 gain d. 1,600 gainarrow_forwardSusie purchased her primary residence on March 15, year 4, for 550,000. She sold it on October 15, year 7, for 240,000. What amount of loss from the sale is recognized on her year 7 income tax return? a. 0 b. 60,000 c. 250,000 d. 310,000arrow_forwardJason sold various business-use assets in Year 10 resulting in a net Section 1231 gain of $8,100. Jason had the following net Section 1231 gains and losses in the previous years: Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 ($4,000) ($2,900) $5,100 Year 10 $1,100 ($5,400) $4,400 How is the Year 10 net Section 1231 gain of $8,100 treated? (Do not leave any field blank. If answer is zero, please enter O for the amount.) $ Ordinary Loss $ Ordinary Income $ LTCG Gainarrow_forward
- In the current year, Madison inherited investment property from a parent's estate with a fair market value of $200,000. The parent had a basis in the asset of $100,000. Madison sold the property for $150,000 in the year the parent died. What is Madison's gain or loss on the sale? $50,000 short-term loss. O $50,000 long-term gain. о $50,000 long-term loss. O $50,000 short-term gain.arrow_forwardMike sold the following assets during the current year: Painting Stamp collection Car Antique desk O a $654 O b. $788 Sales price O c. $1,310 O d. $655 2,508 600 708 1,181 Cost 885 1,200 1,406 Which one of the following amounts represents his taxable capital gain, net of allowable capital losses, for tax purposes during the current year? 1,379arrow_forwardIn the current year, Madison inherited investment property from a parent's estate with a fair market value of $200,000. The parent had a basis in the asset of $100,000. Madison sold the property for $150,000 in the year the parent died. What is Madison's gain or loss on the sale? $50,000 short-term loss. ○ $50,000 long-term gain. O $50,000 long-term loss. $50,000 short-term gain.arrow_forward
- Oisha gave a parcel of realty to Julie valued at $197,500 (Oisha purchased the property five years ago for $83,000). a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $204,800. What is the amount of her gain or loss, if any, on the sale? Answer is complete but not entirely correct. $ 182.500 $ 121,800 a. Amount of taxable gift b. Amount of gainarrow_forwardOn 1 July 2000, Genevieve purchased a property in Sydney for $300,000 Her intention was to use it for income producing purposes and it was Immediately made available for rent. It remained available for rent until it was sold. She sold the property on 31 December 2019 for $600,000. Required: Based on this information, calculate the Net Capital Gain, if any, to be included in Genevieve's assessable income for year ending 30 June 2020arrow_forward
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