0. If an amount is zero, enter "0". a.  What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss  of which $___________is recognized. b.  What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.

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

A: d)   Realized Gain $    550,000.00 § 121 exclusion $    250,000.00 Recognized Gain ($550,000 -…

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

A: Introduction:- The following basic information as follows under:- Leron and Sheena sold their home…

Q: Linda purchased a cottage in 1984 for $62,000; on February 22, 1994, it was valued at $126,000. On…

A: The profit made on the sale of an asset such as stocks, bonds, or real estate is referred to as…

Q: Estelle owns The Estelle Talent Agency in New York. On November 10, 2020, she purchased office…

A: Cost recovery deduction refers to the recovery of the cost incurred to acquire the asset and expense…

Q: Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1993. He…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

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

A: Calculation of realized gain: Realized gain can be calculated by using the below formula,

Q: Should Jorge close the sale of Activity A with Juanita this year, or should he wait until next year…

A: Income tax expense:   The expenses which are related to the taxable income of the individuals and…

Q: Kase, an individual, purchased some property in Potomac, Maryland, for $150,000 approximately 10…

A: In the United States, a like-kind exchange, also known as a 1031 exchange, is a transaction or…

Q: Using the following independent situations, answer the following questions: Situation # 1 Clara…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: Rose dies with passive activity property having an adjusted basis of $111,600, suspended losses of…

A: Answer: Amount deductible on Rose's final return or by the beneficiary = $0. The basis for the…

Q: Jorge owns two passive investments, Activity A and Activity B. He plans to sell Activity A in the…

A: The suspended losses of activity B would be adjusted from the Sale of activity A in calculation of…

Q: uired § 1244 stock in Blue Corporation at a cost of $83,600. He sells the Blue stock for $8,360 in…

A: Given:  Mohammed, who is single, acquired § 1244 stock in Blue Corporation at a cost of $83,600. He…

Q: In year 0, Patrice purchased a machine to use in its business for $112,000. In year 3, Patrice sold…

A: Cost of machine= $112,000 Depreciation = $64,000 Book value of machine at Year 3 = $112,000 –…

Q: Kaylee transfers land to Mer Corporation with a basis of $300,000. The property is worth $700,000.…

A: Taxable income is the total income earned by an individual or a company on which he/she has to pay…

Q: On July 1, 2020. Ted, age 73 and single, sells his personal residence of the last 30 years for…

A: Recognized gain is the gain that has been earned by the individual on the sale of an asset and that…

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: Patrick owns a building used in his business with an adjusted basis of $300,000 and a $875,000 FMV.…

A: If the future cash flows is not expected to change subsequently right after the exchange of asset,…

Q: Kase, an individual, purchased some property in Potomac, Maryland, for $228,000 approximately 10…

A: Unrealized gains and losses: These are gains and losses which are unrealized and are the result of…

Q: Steve owns real estate (adjusted basis of $12,000 and fair market value of $15,000), which he uses…

A:

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: Karl purchased his residence on January 2, 2020, for $260,000, after having lived in it during 2019…

A:

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: Estelle owns The Estelle Talent Agency in New York. On November 10, 2020, she purchased office…

A: Depreciation is an annual income tax deduction that helps you to reimburse the expense or other…

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: Rose dies with passive activity property having an adjusted basis of $98,800, suspended losses of…

A: SOLUTION- EXPLANATION- AS PER IRC SECTION 469(g)(2) , WHEN A PASSIVE ACTIVITY PROPERTY IS TRANSFER…

Q: in

A:

Q: Constanza, who is single, sells her current personal residence (adjusted basis of $244,500) for…

A: Recognized Gain - In case of Capital gain from the primary residence of an individual they will get…

Q: Nathaniel has AGI (before any rental loss) of $65,000. He also owns several rental properties in…

A: ANSWER   Alternative minimum tax and Passive Income/loss & At-risk amount AMT is applicable to…

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: 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: Maria, Bakka and Osing are the heirs of Jaime who died on September 1, 2019/ The properties of jaime…

A: The inherited rental property will be treated as an investment property by the IRS.

Q: Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $270.000. He…

A: Comment - Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: What is correct?

A: Given information is: Auntie sold some stock she purchased several years ago for $10,000 to Niece…

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

A: Recognized gain: It implies to the excess of sales proceed of an asset over the original amount that…

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: Constanza, who is single, sells her current personal residence (adjusted basis of $190,500) for…

A: A realized gain is a profit made by selling an asset for a higher price than when it was bought.…

Q: On October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their…

A: Section 121 of IRC, allows the taxpayer to exclude upto $500,000 who file jointly and $250,000 for…

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: Camilo's property, with an adjusted basis of $304,000, is condemned by the state. Camilo receives…

A: Step 1: Compute Camilo's realized gain: Step 2: Compute Camilo's recognized gain: Camilo's…

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: Mr. F sold his principal residence which he acquired for P1,000,000 for P3,000,000. At the time of…

A: Capital gain tax (CGT) refers to the profit which is made by individual from selling the capital…

Q: What is Ashley’s adjusted basis of the property?

A: Solution:- Adjusted basis of Property :- Adjusted basis refers to how much you lose or gain when you…

Q: In Year 1, T receives a parcel of real estate worth $50,000 in exchange for the performance of…

A: Comments; Multiple Questions asked  Revenue Recognition - It is a principle that states that revenue…

Q: What is Barbara's recognized gain or loss in the current year related to this exchange?

A: Given facts:  Fair value of old property = $330,000  Adjusted basis of old property = $275000  Fair…