Reference no: EM132924449
Question - Bobby likes to dabble in real estate and he has tried to take advantage of the many real estate tax deductions over the years. Bob is married to Patti. He and Patti file a joint tax return for all years shown below.
In 2000 Bob purchased a rental property, Property A, for $150,000.
In 2009, Bob exchanged Property A for another rental property, Property B. The property that he acquired had a fair market value worth $250,000. Only the two real estate properties were exchanged. Bob's adjusted basis in Property A, was $125,000.
In 2011, Bob exchanged Property B for Property C, an undeveloped 5 acre lot near a national park. Bob immediately built a very nice vacation home on the property. At the time of exchange, Bob's adjusted basis in Property B was $115,000 and within 6 months of acquiring Property C Bob had completed his vacation home. At the time of "exchange," Property B was sold for $350,000 using a qualified intermediary. All of the proceeds were reinvested into acquisition and development of Property C and Bob never took possession of the money. In order to complete the build out of Property C, Bob had to invest an additional $250,000 in the property.
In 2016, Bob liked Property C so much that he changed it from a rental property to his primary residence and moved in. At that time Property C had an adjusted basis of $340,000 and a fair market value of $800,000.
In 2021, Bob and Patti hope to sell Property C and downsize. Assume they can sell Property C for $1.1 million and purchase Property D, a $400,000 home in a retirement community. What would be the tax consequences of such a sale as currently described. What recommendations do you have for Bob and Patti as they contemplate this transaction?
For each of the transactions above indicate Bob's and Patti's realized gain, recognized gain, and adjusted basis in the new property following the transaction. In 2021, assume that Bob's and Patti's taxable income, BEFORE CONSIDERATION OF THESE TRANSACTIONS, is $100,000.
|
How analyses of the voters views may affect decisions
: How analyses of the voters views may affect decisions by legislative leaders in recommending or positioning national policies (e.g., Congress' decisions)
|
|
At how much a gain should be recorded
: The crane cost $20,000, had $5,000 of accumulated amortization, and a fair market value of $16,000. In recording the sale, at how much gain should be recorded
|
|
Determine the additional information needed to develop
: Include bias that each person in the scenario might have which could affect the problems and solutions. Determine the additional information needed to develop
|
|
How each applies to the enhancement of the work team
: How each applies to the enhancement of the work team. Do you feel these are fixed positions or are there times when the nurse could move
|
|
Indicate Bob and Patti realized gain and recognized gain
: For each of the transactions above indicate Bob's and Patti's realized gain, recognized gain, and adjusted basis in the new property following the transaction
|
|
Identify key teaching points would communicate to parents
: Summarize the article and identify the key teaching points you would communicate to parents regarding the health maintenance for children during COVID-19.
|
|
Discuss the ethical effects of this misstatement
: Discuss the ethical effects of this misstatement and what procedures would have prevented the misstatement
|
|
Identify a nursing philosophy that best matches personal
: Apply what you have learned about nursing theory in this course. Identify a nursing philosophy that best matches your personal philosophy.
|
|
What is the implied equity risk premium
: Saerta's beta is 1.2, and its cost of equity is 9%. Assume that the risk-free rate (RF) is 3%. What is the implied equity risk premium
|