Prepare a depreciation schedule for the rental equipment, Advanced Statistics

Assignment Help:

Sam Tyler, a single taxpayer, social security number 111-44-1111, bought Rental Equipment on 04/01/2010. He paid $400,000 including all closing and delivery costs. In the current year, he collected rents of $27000 and paid tangible taxes of $7,000, insurance $3700, maintenance $12000, repairs $1700, Note interest $11500.

On June 1, of the current year, Sam sold the rental property for $465,000. Sam paid the closing costs and commissions of $15,000. The buyer put a $65,000 deposit down on the property and signs a promissory note for $400,000 with interest payable at 5% annually.

Sam receives $10667 of interest from the buyer in current year and $50000. in principal payments on the seller financed loan. Assume the buyer is not a related party and that Sam does not participate in this equipment rental activity.

  1. Prepare a depreciation schedule for the rental equipment through the current year (2012) assuming 50% bonus depreciation was available in 2010.  Assume equipment has a 5 year life. This schedule may be an Excel spreadsheet and usually includes asset costs, date acquired, depreciation expense allowed each year and accumulated deprecation to date. You must use the MACRS tables containing percentages to use in your Excel spreadsheet for calculating the depreciation. Half year convention will apply to year of sale. It would also tie to the fixed asset section of a balance sheet if one existed. HINT: Accumulated Depreciation at 12/31/11 is $304,000
  2. Prepare Schedule B, E (You will use schedule E since the actual schedule required for Tangible property rents would simply be a manually prepared schedule identical to schedule E.)  and  form 4562 for the taxpayer's current year rental activity.
  3. Prepare forms 4797, 6252 and schedule D for the sale of the property. Prepare these forms in the order shown here. You will use part III of form 4797. Read the instructions for 4797 Line 32 will be blank with installment sale or gain will get reported twice. Filled in forms 4797 and 6252 may be found in your text see Appendix B for page numbers. See pages 13-25 and 11-29 in your text for filled out forms 4797 and 6252 this may help you.
  4. Write a brief memo explaining to the taxpayer the character of all of the income, gains and losses and applicable tax rates from this activity and transaction in the current year. Include any planning options they have for the future years taxes from this transaction. Bullet points are fine.

Related Discussions:- Prepare a depreciation schedule for the rental equipment

Linear regression, regression line drawn as Y=C+1075x, when x was 2, and y ...

regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual

Average age at death, Average age at death : A ?awed statistic summarizing ...

Average age at death : A ?awed statistic summarizing expectancy of the life and other aspects of the mortality. For instance, a study comparing average age at the death for male sy

Cohort study, Cohort study : An investigation in which the group of individ...

Cohort study : An investigation in which the group of individuals (or the cohort) is identi?ed and followed prospectively, possibly for many years, and their subsequent medical his

Gauss markov theorem, This is the theorem which states that if the error te...

This is the theorem which states that if the error terms in a multiple regression have the same variance and are not corrected, then the estimators of the parameters in the model p

White''s general heteroscedasticity test, The Null Hypothesis - H0:  γ 1 =...

The Null Hypothesis - H0:  γ 1 = γ 2 = ...  =  0  i.e.  there is no heteroscedasticity in the model The Alternative Hypothesis - H1:  at least one of the γ i 's are not equal

Queuing theory, 1) Let N1(t) and N2(t) be independent Poisson processes wit...

1) Let N1(t) and N2(t) be independent Poisson processes with rates, ?1 and ?2, respectively. Let N (t) = N1(t) + N2(t). a) What is the distribution of the time till the next epoch

Marginal matching, Marginal matching is the matching of the treatment grou...

Marginal matching is the matching of the treatment groups in terms of means or other summary characteristics of matching variables. This has been shown to be almost as efficient a

Explain prospective studies, Prospective study : The studies in which indiv...

Prospective study : The studies in which individuals are followed-up over the period of time. A general example of this type of investigation is where the samples of individuals ar

Explain perturbation theory, Perturbation theory : The theory useful in ass...

Perturbation theory : The theory useful in assessing how well a specific algorithm or the statistical model performs when the observations suffer less random changes. In very commo

Survey Design, Hello, I have a solution for a Survey Design (proposal) assi...

Hello, I have a solution for a Survey Design (proposal) assignment and looking for an expert that can look at it and correct it in case if it is wrong. Do you have this kind of ser

Write Your Message!

Captcha
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