Tax issues faces in making decision

Assignment Help Business Management

Reference no: EM1334731

Celine is going to be subject to the AMT in 2005. She owns an investment building and is considering disposing of it and investing in other realty. Based on an appraisal of the building's value, the realized gain would be $85,000. Ed has offered to purchase the building from Celine with the closing date being December 29, 2005. Ed wants to close the transaction in 2005 because certain beneficial tax consequences will result only if the transaction is closed prior to the beginning of 2006.

Abby has offered to purchase the building with the closing date being January 2, 2006. The building has a $95,000 greater AMT adjusted basis. For regular income tax purposes, Celine expects to be in the 25% tax bracket in 2005 and the 28% tax bracket in 2006.

What are the relevant tax issues that Celine faces in making her decision?

Reference no: EM1334731

Questions Cloud

Regarding elements of defamation : What elements constitute a cause of action for defamation? Describe the elements of defamation and examine libel versus slander.

What policy regarding external competitiveness : What policy regarding external competitiveness would you advise and List the options and the pros and cons of each policy option. Offer the rationale for your recommendation.

Discuss the various types of ratios : Discuss the various types of ratios and their uses.

Explain the assumptions of the consumer demand model : Explain the Assumptions of the Consumer Demand Model and How do the variables influence each other

Tax issues faces in making decision : What are the relevant tax issues that Celine faces in making her decision?

Discuss the implication on earnings and cash flow : Discuss the implication on earnings and cash flow, and articulate why this project was chosen over the multitude of options that exists.

Human resources and stragetic leadership : Show how a leader identifies what is "right" for his or her organization.

Compare the growth strategies of mcdonald''s and wal-mart : Compare the growth strategies of McDonald's and Wal-Mart

Neglecting the supervision : What is the institutionâ??s legal duty with respect to a student for whom it arranges an off campus internship or practicum?

User Account

All Pages