Kk173. , Lauren and Javier were married in 2016. A yearlater, in 2017, they purchased their first home for$350,000. After making this house their mainhome for three years, the couple relocated toanother state in May 2020. At first, they werereluctant to sell the house they had purchased in2017 because they thought they mighteventually move back. However, they finally didput the house on the market, and in August2021, they sold it for $470,000. Their expenses ofsale included a real estate commission of$28,000. Lauren and Javier will file a joint 2021return. Their only other income for the yearconsisted of $198,000 in wages. What amount ofcapital gain tax will they have to pay on the saleof this property?$0$13,800$18,000$22,080

Capital gains are paid on the sale value if it exceeds the purchase value. However, various…

Answered: capital gain tax

Business

Accounting

capital gain tax

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 40P

See similar textbooks

Similar questions

Daniel Jackson bought a home in 2010, before he married his wife Sarah. In 2020, Daniel and Sarah are equired to move due to Sarah’s new position she was offered recently. Daniel bought the home for 250,000 and it is being sold for 700,000 (it has had some upgrades). Daniel is self-employed so this won’tbe a problem for him. Sarah and Daniel were married 8 years ago. During his ownership, Daniel had a home office, where he worked form time to time.As a part of the sale, these are the required known attributes:• Sales Contract Price: 700,000• Expenses of the sale: 57,000• Purchase price: 250,000• Accumulated Depreciation for Home Office: $75001. Will they qualify for any gain exclusions? If so, explain why. If not, explain why
Lauren and Javier were married in 2016. A year later, in 2017, they purchased their first home for $350,000. After making this house their main home for three years, the couple relocated to another state in May 2020. At first, they were reluctant to sell the house they had purchased in 2017 because they thought they might eventually move back. However, they finally did put the house on the market, and in August 2021, they sold it for $470,000. Their expenses of sale included a real estate commission of $28,000. Lauren and Javier will file a joint 2021 return. Their only other income for the year consisted of $198,000 in wages. What amount of capital gain tax will they have to pay on the sale of this property? $0 $13,800 $18,000 $22,080
Daniel Jackson bought a home in 2010, before he married his wife Sarah. In 2020, Daniel and Sarah are required to move due to Sarah’s new position she was offered recently. Daniel bought the home for 250,000 and it is being sold for 700,000 (it has had some upgrades). Daniel is self-employed so this won’t be a problem for him. Sarah and Daniel were married 8 years ago. During his ownership, Daniel had a home office, where he worked form time to time. As a part of the sale, these are the required known attributes: Sales Contract Price: 700,000 Expenses of the sale: 57,000 Purchase price: 250,000 Accumulated Depreciation for Home Office: $7500 What is the amount of gain they will realize and recognize?
Daniel Jackson bought a home in 2010, before he married his wife Sarah. In 2020, Daniel and Sarah are equired to move due to Sarah’s new position she was offered recently. Daniel bought the home for 250,000 and it is being sold for 700,000 (it has had some upgrades). Daniel is self-employed so this won’tbe a problem for him. Sarah and Daniel were married 8 years ago. During his ownership, Daniel had a home office, where he worked form time to time.As a part of the sale, these are the required known attributes:• Sales Contract Price: 700,000• Expenses of the sale: 57,000• Purchase price: 250,000• Accumulated Depreciation for Home Office: $7500 1. What is the amount of gain they will realize and recognize?
Colin McGregor and his wife Alice own a house in Kelowna as well as a condo at Big White. They purchased the house in Kelowna in 1997 for $270,000 and the condo in 2012 for $190,000. Both properties have been used exclusively by the McGregors. Early in 2021 the McGregors retired and put both properties up for sale. The condo sold in April for $420,000 and the house sold in July for $750,000. Determine the minimum capital gain that must be reported on the sale of the two properties.
aniel Jackson bought a home in 2010, before he married his wife Sarah. In 2020, Daniel and Sarah are equired to move due to Sarah’s new position she was offered recently. Daniel bought the home for 250,000 and it is being sold for 700,000 (it has had some upgrades). Daniel is self-employed so this won’tbe a problem for him. Sarah and Daniel were married 8 years ago. During his ownership, Daniel had a home office, where he worked form time to time.As a part of the sale, these are the required known attributes:• Sales Contract Price: 700,000• Expenses of the sale: 57,000• Purchase price: 250,000• Accumulated Depreciation for Home Office: $7500 What is the effect of the home office on the gain calculation?
Sam bought a townhouse in 2005 with 30-year fixed mortgage. He married Ada in 2008. The next year, Ada inherited a small condo form her father. They sold the condo immediately and used proceeds from the condo as down payment to buy a $600,000 SFH in Northridge. This SFH became their primary home. Sam rented out the townhouse for $2,000/month and put rental income in their joint account. Which of the following statement regarding ownership is correct? Townhouse is Sam's separate property; condo is Ada's separate property; rental income becomes community property O Townhouse and rental income are Sam's separate property; condo becomes community property Townhouse and rental income are Sam's separate property; condo is Ada's separate property O Townhouse is Sam's separate property; condo and rental income become community property.
In 2020, Regina moved across the country from the east coast to the west coast. She was moving because the advertising agency she worked for wanted her to relocate to work with a big new client the company had landed on the west coast. Her company reimbursed $7,500 of moving expenses (her total cost for the move), and her total wages for the year were $110,000 While living on the west coast, she began volunteering for a children's hospital doing public relations for their office. She estimated her time volunteering at the hospital during the year was worth $7,000. She also paid $350 in professional ducs to the American Association of Advertising Agencies the beginning of the year, which was rimbursed by her employer. Determine Regina AG for 2020. a. None of the above. b. $117,500 c. $110.150 d. $110,000 e. $117,150
On March 10, 2019, Elizabeth, a college professor, purchased a house for $300,000. She did not move into the house until August 8, 2019. On August 1, 2020, she accepted a po-sition as a visiting professor at Hogwatts University for one year and moved to Liverpool where she rented an apartment. While away at Hogwatts, two of her former students lived in the house but did not pay rent. She returned to the house on August 1, 2021, and lived in the house until July 15, 2022, when she sold the house for $500,000. The realtor’s commission was $35,000. Determine her recognized gain.
Amanda purchased a home for $500,000 in 2016. She paid $100,000 cash and borrowed the remaining $400,000. This is Amanda's only residence. Assume that in year 2023, when the home had appreciated to $750,000 and the remaining mortgage was $300,000, interest rates declined and Amanda refinanced her home. She borrowed $500,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of acquisition indebtedness for the purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)
The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2022. They originally paid $80,000 for the home on July 3, 1996, but managed to sell it for $598,000. They spent $14,000 on improvements over the years. How do I fill out the Form 8949?
Anna Osinski acquired a townhouse unit in 2019 for $120,000 (land $10,000, building $110,000). She bought the unit in order to rent it. By the end of 2021, the undepreciated capital cost of the building was $103,500. In August 2022, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $136,000 (land $12,000, building $124,000). Prior to August, her 2022 net rental income before capital cost allowance was $1,000. In September 2022, Anna purchased, for rental purposes, a residential condominium unit for $145,000 (land $15,000, building $130,000). Between September and the end of the taxation year, the condo earned net rentals of $900 before capital cost allowance. Required: Determine the Change to Anna's 2022 net income for tax purposes as a result of the above activity. Change to net income $ 0