Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $159,400 each. Dexter's basis in each lot sold is $111,580, and he incurs total selling expenses of $6,376 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $ as a capital gain. I of which is classified as ordinary income and
Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $159,400 each. Dexter's basis in each lot sold is $111,580, and he incurs total selling expenses of $6,376 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $ as a capital gain. I of which is classified as ordinary income and
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 24CE
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Transcribed Image Text:Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the
tax year sells the first eight lots to eight different buyers for $159,400 each. Dexter's basis in each lot sold is $111,580, and he incurs
total selling expenses of $6,376 on each sale.
What is the amount of Dexter's capital gain and ordinary income?
If required, round your answers to the nearest dollar.
Dexter has a realized and recognized gain of $
as a capital gain.
of which $
is classified as ordinary income and
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