Reference no: EM13787528
Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $542,500. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $942,500.
a. What amount of gain on the sale of the home are the Pratts required to include in taxable income?
Recognized gain?
b. Assume the original facts, except that Steve and Stephanie lived in the home until January 1 of year 3 when they purchased a new home and rented out the original home. They finally sell the original home on June 30 of year 5 for $942,500. Ignoring any issues relating to depreciation taken on the home while it was being rented, what amount of realized gain on the sale of the home are the Pratts required to include in taxable income?
Recognized Gain?
c. Assume the same facts as in part (b), except that the Pratts lived in the home until January of year 4 when they purchased a new home and rented out the first home. What amount of realized gain on the sale of the home will the Pratts include in taxable income if they sell the first home on June 30 of year 5 for $942,500?
Recognized Gain?
d. Assume the original facts, except that Stephanie moved in with Steve on March 1 of year 3 and the couple was married on March 1 of year 4. Under state law, the couple jointly owned Steve’s home beginning on the date they were married. On December 1 of year 3, Stephanie sold her home that she lived in before she moved in with Steve. She excluded the entire $150,000 gain on the sale on her individual year 3 tax return. What amount of gain must the couple recognize on the sale in June of year 5?
Recognized Gain?
|
Assignment on communication process
: Assignment On Communication Process, Find a Web site that has an "About Us" section or a "Press Release" section.
|
|
Holder of negotiable promissory note would be least holder
: A holder of a negotiable promissory note would be least likely be a holder in due course if:
|
|
Develop an argument regarding the significance of marketing
: Develop an argument regarding the significance of marketing to organizational success in the 21st century. Assume you are charged with establishing a marketing campaign for a product that is in a mature stage of the product life cycle. Review the 'Ma..
|
|
Our greatest ethical challenge
: question 1 Please share an ethical challenge you've faced either at work or in your personal life and how you resolved it. If you were given the opportunity, is there anything you would do differently? Finally, as our global presence continues to gro..
|
|
What amount of gain on the sale of the home-taxable income
: Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $542,500. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $942,500. What a..
|
|
Social connections and technology and civic engagement
: Evaluate the significance of social capital in the context of global citizenship and multicultural understanding.
|
|
Review the equal opportunity employment laws
: Imagine you are the recruiter in a human resources department. Review the Equal Opportunity Employment Laws presented in this Module. Select one of the laws presented, conduct some academic research on it, and then find a court case that was based on..
|
|
Which of top segments do you think would be most purchase
: Which of the top four segments do you think would be most likely to purchase each of the following products, and why? (If none would, explain why not).
|
|
Job-order costing variables
: On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job totalled $560. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,921. What was overhead appli..
|