22) Pierce, a single taxpayer, sold his home this year. He had owned and lived in the house for 10 years. Pierce signed a contract on March 4 to sell his home. Sales price Selling expenses Replaced and paid for a broken window on March 2 Basis of old home before repairs and improvements $600,000 15,000 800 310,000 Based on these facts, what is the amount of his recognized gain? B) $40,000 C) $275,000 A) $25,000 D) $0

Q: John Johnson, single, sold his home that he had owned for 20 years for $650,000. He purchased it for…

A: Gain is the amount that is difference between the purchase price and sales price.

Q: Linda purchased a cottage in 1984 for $62,000; on February 22, 1994, it was valued at $126,000. On…

A: The profit made on the sale of an asset such as stocks, bonds, or real estate is referred to as…

Q: Last year Acme paid Ralph $15,000 to install a new air-conditioning unit at its headquarters…

A: Ralph received payment last year he has control over property also visible evidence of the payment.…

Q: Taxpayer owns a building that she uses in her business. Taxpayer purchased the building several…

A: 1. Depreciation Recapture: When assets is sold, the profit up to Depreciation claimed is treated is…

Q: Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the…

A: When an investment, such as a stock, that has been held for less than a year is sold, a short-term…

Q: Alejandro purchased a building in​ 1985, which he uses in his manufacturing business. Alejandro used…

A: We have the following information: Original cost of the building: $500,000 Deductions allowed:…

Q: dual has the land appraised and finds out it is only worth $45,000. The individual decides not to…

A: Capital loss refers to the loss situation that happened while selling off a capital asset below its…

Q: Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet…

A: The simplified method helps to enter the tax-free part of any annuity payout. Divide the expenses…

Q: Pierce, a single taxpayer, sold his home this year. He had owned and lived in the house for 10…

A: A recognized gain occurs when an investment or item is sold for a higher price than it was…

Q: 1. In 2008, Barney purchased a holiday home near the beach for use by his family on weekends for…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the Amount Realized, Type and amount of Basis, and Gain or Loss of the following Lois gives…

A: Gift of the property would be considered as the property which is transferred for other person for…

Q: Simone, a single taxpayer, bought her home in Orlando 25 years ago for $55,000. She has lived…

A: Given that: Purchase price of home = $55000 Sale value of home = $405000

Q: Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During…

A: To extent of depreciation will be treated as section 1250 Unrecaptured gain.  Balance gain is…

Q: George purchases a computer on 02/01/2020 for $2,200 and uses the computer 75% of the time for his…

A: Depreciation is an annual deduction that allows a business to recover the cost or other basis of…

Q: John purchased a house for $300,000. It is now worth $800,000 4 years later. Johns fiancee lived…

A: Profits from home sales are deemed capital gains and will be taxed at federal rates of 0%, 15%, or…

Q: Brandon, an individual, began business four years ago and has sold §1231 assets with $6,000 of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 24. Dan owned a small rental property, which was condemned by the county to expand a local park. His…

A: Amount realized =$75000Amount of replacement property =$70000Unspent part ofAmount realized =$5000

Q: the capital gains tax due is?

A: Capital gains tax is the tax which is computed on the capital assets which has been sold during the…

Q: dan purchased machinery (7 yr. property) to use in her business on 9/1/18 at a cost of $ 40,000.…

A: Assuming the depreciation on machinery is calculated on SLM basis Depreciation of each year…

Q: In June on this year, Chase purchases a new car for $40,000. He uses the car 75 percent for business…

A: The term depreciation refers to the accounting method used to spread the cost of a tangible or…

Q: On July 1, 2020. Ted, age 73 and single, sells his personal residence of the last 30 years for…

A: Recognized gain is the gain that has been earned by the individual on the sale of an asset and that…

Q: Sergio operates a sole proprietorship. He has a home office that functions as his principal place of…

A: In order to qualify for a home office deduction, the taxpayer must use his/her home or a part of it…

Q: Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the…

A: Recognized gain: It refers to the excess of sales proceeds from the sale of an asset over its actual…

Q: Jane opens a specialty limousine service, as part of which she purchases a Rolls-Royce for $100,000.…

A: The cost basis refers to the original amount of the asset for the tax motive, generally the purchase…

Q: Heather makes cash contributions during the current year of $30,000 and donates property worth…

A: Capital gains refer to the profit earned over when a capital asset is being sold more than its…

Q: Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has…

A: The question is based on the concept of Financial Accounting.

Q: Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both…

A: Section 1231 is used for depreciable real property for more than one year. Under this section gain…

Q: During the current year, Mr. and Mrs. West paid the following taxes: Property taxes on residence…

A: Taxes are the charges levied by the state and central government on total income generate by an…

Q: Susan, a single taxpayer, bought her home 25 years ago for $30,000. She has lived in the home…

A: Tax is a liability calculated on the income earned and paid to the government. It acts as revenue…

Q: In 2021, Morley, a single taxpayer, had an AGI of $30,000 before considering the following items:…

A: The gain and loss are canceled out when a taxpayer has both a personal casualty gain and a personal…

Q: A tax payer is treating real property used solely for business purposes for new real property to be…

A: The question is related to taxation. The details are given regardong the same as under Real Property…

Q: Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the…

A: Recognized gain: It implies to the excess of sales proceed of an asset over the original amount that…

Q: 1. Martha has a net capital loss of $17,000 and other ordinary taxable income of $45,000 for the…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Jim paid his brother to provide computer services for Jim's business. Jim paid him $14,000. Other…

A: Since we answer only one question, we will answer the first question. Please resubmit the question.…

Q: On July 1 of year 1, Elaine purchased a new home for $550,000. At the time of the purchase, it was…

A: At the time of purchase of the property, property tax needs to be paid by the property holder every…

Q: Brandon, an individual, began business four years ago and has sold §1231 assets with $5,550 of…

A: Depreciation recapture of $8,100 becomes ordinary income. In addition, Brandon has $27,950 §1231…

Q: After you determine the Amount Realized, Type and amount of Basis, and Gain or Loss of the…

A: Tax- It refers to the compulsory financial charge or levy imposed on a taxpayer by a government…

Q: Architect, a cash basis taxpayer, has been conducting a business as a sole proprietorship for…

A: Given that: Architect - cash basis taxpayer Adjusted basis of assets = $60,000 Fair market value of…

Q: Dan owned a small rental property, which was condemned by the county to expand a local park. His…

A:

Q: Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During…

A: The question is based on the concept of annual income calculation and annual interest deduction from…

Q: Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20%…

A: Short term capital losses first offset against short term capital gains and Long term capital losses…

Q: Clem and Chloe, a married couple, sell their principal residence that they have owned and occupied…

A: Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need…

Q: Alan owns a ranch in Kansas. During the year, a tornado damaged one of his barns and destroyed some…

A: Please see the next step for the solution

Q: The nephew of a well-known artist gave a costly artwork to an individual taxpayer. After two years,…

A: Answer Given is that The nephew of a well-known artist gave a costly artwork to an individual…

Q: A single taxpayer sold his home on March 4 of the current year for $600,000. He originally bought…

A: The taxpayers are also required to pay capital gains tax on the sale of residential property. The…

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.