Calculate the amount of his capital loss carryforward

Assignment Help Financial Management
Reference no: EM131916126

1a. Elvin, a single taxpayer 45 years of age, sells his residence in 2016. He receives $35,000 in cash, and the buyer assumes his $100,000 mortgage. Elvin also pays $8,100 in commissions and transfer costs.

a. Calculate the amount realized on the sale. $____________________________

b. If the residence was acquired in 1986, and its adjusted basis is $75,000, calculate the amount and nature of the TAXABLE gain on the sale (assuming he does not purchase a new residence). $____________

1b. In 2016, Michael has net short-term capital losses of $1,500, a net long-term capital loss of $27,000, and other ordinary taxable income of $45,000.

a. Calculate the amount of Michael's deduction for capital losses for 2016 $___________

b. Calculate the amount of his capital loss carryforward. $___________

c. For how long may Michael carry forward the unused loss?___________

Reference no: EM131916126

Questions Cloud

Determine how many withholding allowances should phan claim : Phan files as the Head of Household. Follow the steps in Form W-4 to determine how many withholding allowances should Phan claim.
What happens to your consumption of the second good : Name related goods consume which have positive price elasticity. What happens to your consumption of the second good if the price of the first good increases?
What is the discounted payback period for the project : What is the discounted payback period for the project assuming a discount rate of 10 percent?
How much did jeremy borrow : Jeremy Fenloch borrowed some money from his friend and promised to repay him $1,300, $1,380, $1,540, $1,600, and $1,640 over the next five years.
Calculate the amount of his capital loss carryforward : Elvin, a single taxpayer 45 years of age, sells his residence in 2016. He receives $35,000 in cash, and the buyer assumes his $100,000 mortgage.
Which will have a more price-elastic supply over six months : Which will have a more price-elastic supply over six months: real estate in downtown Manhattan or real estate in rural Oklahoma? Explain your reasoning.
What is the amount of keiths moving expense deduction : Keith is not reimbursed for any of these expenses by his employer. What is the amount of Keith's moving expense deduction?
Explain why the price elasticity of demand might be elastic : Explain why the price elasticity of demand for math tutoring might be elastic. Then explain why price elasticity of demand for math tutoring might be inelastic.
What are the respective rent increases from last year : Broker/owner Johnson of ABC Realty Inc, is weighing the financial merits of remaining in the office premises that consists of 3,250 square feet.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the current price of the stock

Ginger Baker, Inc. just paid an annual dividend of $3 a share and this dividend is expected to grow at a rate of 4% per year for the foreseeable future.- If the discount rate for Ginger Baker is 9%, what is the current price of the stock?

  The four-year life of the investment are projected

An investment has an installed cost of $327,800. The cash flows over the four-year life of the investment are projected to be $221,850, $238,450, and $205,000 If the discount rate is zero, what is the NPV? If the discount rate is 10%, what is the NPV..

  Determine economic service life and the respective aw

Determine the economic service life and the respective AW.

  What is holding period return

During the year the stock paid dividends of $2.03 per share. What is Sarah’s holding period return.

  Probability distributions of expected future returns

Expected returns Stocks A and B have the following probability distributions of expected future returns.

  Non-controlling and treasury stock

Treasury Stock (if any; provide the absolute value). Non-controlling (minority) interest (if any)

  Your realized return is known as the holding period yield

If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).

  What is the cost of retained earnings

What is the cost of retained earnings?

  Representation of demand curves that inelastic and elastic

Define Elasticity and provide a graphical representation of demand curves that inelastic and elastic.

  What is dividend reinvestment plan

Why might a business choose to misrepresent itself as small business? What is a dividend reinvestment plan (DRIP), and how does it work?

  What will be future value of your investment in five years

What will be the future value of your investment in 5 years?

  Size of the monthly payments he will be required to make

Joe secured a loan of $12,000 three years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 4%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by am..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd