Calculate the amount realized on the sale

Assignment Help Financial Management

Reference no: EM131448830

1. 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). $____________

2. 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: EM131448830

Questions Cloud

How was bernie madoff able to convince people to invest : How was Bernie Madoff able to convince people to invest with him? What steps would you take if you found out that someone you respected was being unethical?

Economy probability of states percentage returns economic : State of the economy Probability of the states Percentage returns Economic recession 22% -3.7% Steady economic growth 48% 6.0% Boom

Evaluate the projected impact of these changes : Provide an overview of the program citing changes in the legislation since inception - Analyze the effectiveness of the program in terms of meeting its intended purpose.

Why client would want the information to remain undisclosed : Analyzes why the client would want the information to remain undisclosed and what the potential issues could be if the information was disclosed.

Calculate the amount realized on the sale : Calculate the amount realized on the sale. Calculate the amount of his capital loss carryforward.

Describe concurrent engineering and management : List and describe the critical roles of senior/executive management during the life cycle of the project.

What is a pseudo-event : What are some of the major issues involving political advertising? What is a pseudo-event? How does it relate to the manufacturing of news

Rationale for the strategic alliance or joint venture : Explain the rationale for the strategic alliance or joint venture. Discuss how the strategic alliance or joint venture worked out.

What was the yield on the bond when you purchased it : Suppose that you invested in a twenty-year zero coupon bond with a face value of $1000. what was the yield on the bond when you purchased it?

User Account

All Pages