Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 24CE
a.
To determine
Explain the exclude of realized gain on January 2020 sale if Mr. A’s neighbors are noisy.
b.
To determine
Explain the exclude of realized gain on January 2020 sale if Mr. A’s job transferred to another city.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Jamil, who is single, sold his principal residence on April 10, 2020, and excluded the realized gain under § 121 (exclusion on the sale of a principal residence). On April 12, 2020, he purchased another principal residence, which he sells on January 12, 2021, for a realized gain of $63,000.
Based on each selling reason listed below, indicate if Jamil can exclude the January 2021 $63,000 realized gain by selecting "No, may not exclude" or "Yes, can exclude" and enter the amount of recognized gain for each.
a. His noisy neighbors?
b. A job transfer to another city?
Exclude or Not?
Amount of§ 121 exclusion
Amount ofrecognized gain
a.
His noisy neighbors?
_________
$_________
$_________
b.
A job transfer to another city?
_________
$_________
$_________
Jamil, who is single, sold his principal residence on April 10, 2020, and excluded the realized gain under § 121 (exclusion on the sale of a principal residence). On April 12, 2020, he purchased another principal residence, which he sells on January 12, 2021, for a realized gain of $63,000.
Based on each selling reason listed below, indicate if Jamil can exclude the January 2021 $63,000 realized gain by selecting "No, may not exclude" or "Yes, can exclude" and enter the amount of recognized gain for each.
b. A job transfer to another city?
Yes, can exclude. Amount of § 121 exclusion $________ (Side note: $63,000 is not correct.) Amount of recognized gain $0.
On February 1, 2019, Patterson (who is single) sold his principal residence (home 1) at a $150,000 gain. He was able to exclude the entire gain on his 2019 tax return. Patterson purchased and moved into home 2 on the same day. Assuming Patterson lives in home 2 as his principal residence until he sells it, which of the following statements is true?
Question 29 options:
Patterson will not be allowed to exclude gain on home 2 if he sells home 2 in 2020.
Patterson will be eligible to exclude gain on home 2 only if he waits until 2024 to sell it.
In certain circumstances, Patterson may be able to exclude gain on home 2 even if he sells home 2 in 2019.
None of the choices are correct.
Chapter 15 Solutions
Individual Income Taxes
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - LO.2 Melissa owns a residential lot in Spring...Ch. 15 - LO.2 Ross would like to dispose of some land he...Ch. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 11DQCh. 15 - LO.3 Reba, a calendar year taxpayer, owns an...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 15DQCh. 15 - Prob. 16CECh. 15 - Prob. 17CECh. 15 - Prob. 18CECh. 15 - Prob. 19CECh. 15 - LO.3 On June 5, 2019, Brown, Inc., a calendar year...Ch. 15 - LO.3 Camilos property, with an adjusted basis of...Ch. 15 - Prob. 22CECh. 15 - Prob. 23CECh. 15 - Prob. 24CECh. 15 - Prob. 25CECh. 15 - Prob. 26CECh. 15 - Prob. 27PCh. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33PCh. 15 - Ed owns investment land with an adjusted basis of...Ch. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37PCh. 15 - Prob. 38PCh. 15 - Prob. 39PCh. 15 - Prob. 40PCh. 15 - LO.3 Howards roadside vegetable stand (adjusted...Ch. 15 - Prob. 42PCh. 15 - Prob. 43PCh. 15 - Prob. 44PCh. 15 - Prob. 45PCh. 15 - Prob. 46PCh. 15 - What are the maximum postponed gain or loss and...Ch. 15 - Prob. 48PCh. 15 - Prob. 49PCh. 15 - Prob. 50PCh. 15 - Prob. 51PCh. 15 - Prob. 52PCh. 15 - Prob. 53PCh. 15 - Prob. 54PCh. 15 - Prob. 55PCh. 15 - Prob. 56PCh. 15 - Devon Bishop, age 45, is single. He lives at 1507...Ch. 15 - Prob. 1RPCh. 15 - Prob. 2RPCh. 15 - Taylor owns a 150-unit motel that was constructed...Ch. 15 - Prob. 6RPCh. 15 - Prob. 1CPACh. 15 - Susie purchased her primary residence on March 15,...Ch. 15 - Chad owned an office building that was destroyed...Ch. 15 - Prob. 4CPACh. 15 - Marsha exchanged land used in her business in...Ch. 15 - Prob. 6CPACh. 15 - Prob. 7CPA
Knowledge Booster
Similar questions
- Lisa sells business property with an adjusted basis of $138,900 to her son, Alfred, for its fair market value of $111,120. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $ realized loss of which $ is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $152,790? For $90,285? If Alfred sells the property for $152,790, he has a recognized gain If Alfred sells the property for $90,285, he has a recognized loss of $ ✓of $arrow_forwardLisa sells business property with an adjusted basis of $168,800 to her son, Alfred, for its fair market value of $135,040. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $ realized of which $ b. What is Alfred's recognized gain or loss if he subsequently sells the property for $185,680? For $109,720? If Alfred sells the property for $185,680, he has a recognized is recognized. If Alfred sells the property for $109,720, he has a recognized of $arrow_forwardOn October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their personal residence, which they have owned and Iived in lor & years. The realized gain of $325,000 is excluded under 5121 (Sale of a Principal Residence). They purchase another personal residence for $525,000 on October 2, 2019. Alice's employer transfers her to the Denver office in August 2020. Jasper and Alice sell their Chicago residence on August 2, 2020 and they purchase a residence in Denver shortly thereafter. The realized gain on the sale is $300,000. Which of the following statements is true regarding the August 2020 sale? O Jasper and Alice cannot exclude any of the gain from the August 2020 sale because they did not own and lve in the home for at least 2 years. O Jasper and Alice can exclude $104,167 on the August 2020 sale O Jasper and Alice can exclude $208,333 on the August 2020 sale. O Jasper and Alice can exclude $250,000 on the August 2020 sale. O Jasper and Alice can exclude…arrow_forward
- Michael (single) purchased his home on July 1, 2011. He lived in the home as his principal residence until July 1, 2019, when he moved out of the home, and rented it out until July 1, 2020, when he moved back into the home. On July 1, 2021, he sold the home and realized a $355,000 gain. What amount of the gain is Michael allowed to exclude from his 2021 gross income?arrow_forwardOn August 31, 2020, Nolan and Lei, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $305,800 was excluded under § 121. They purchased another personal residence in Charleston for $489,280 on September 1, 2020. In 2021, Nolan's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2021, and purchases a new home in Houston. The realized gain on the second sale is $275,220. Do not round any division. What is Nolan and Lei's recognized gain on the second sale?arrow_forwardOn August 31, 2019, Harvey and Ling, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $385,000 was excluded under § 121. They purchased another personal residence in Charleston for $616,000 on September 1, 2019. However, in 2020, Harvey's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2020, and purchases a new home in Houston. The realized gain on the second sale is $346,500. Do not round any division. What is Harvey and Ling's recognized gain on the second sale?arrow_forward
- Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.arrow_forwardLisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its fair market value of $100,000. A . What is Lisa's realized and recognized gain or loss? B. What is Alfred's recognized gain or loss if he subsequently sells the property for $138,000? For $80,000?arrow_forwardOn August 31, 2019, Harvey and Ling, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $327,400 was excluded under § 121. They purchased another personal residence in Charleston for $523,840 on September 1, 2019. However, in 2020, Harvey's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2020, and purchases a new home in Houston. The realized gain on the second sale is $294,660. What is Harvey and Ling's recognized gain on the second sale? $_________arrow_forward
- Joyce is a widowed taxpayer whose husband Willard passed away on March 31, 2020. Joyce and Willard had purchased a home for $215,000 on September 12, 2004, lived in the home as their main home until Willard's death. Joyce moved in with her daughter after Willard's death, and sold the home on November 30, 2020 , for $595,000. How much of the gain on the sale can Joyce exclude from taxable income? Select one: O a. $500,000, the maximum exclusion for an unmarried surviving spouse O b. $380,000, the amount of gain on the sale of the home O C. $250,000, the maximum exclusion amount for a single taxpayer O d. $0, because she moved out before she sold the homearrow_forwardDanielle purchased a home with her husband, Neville, in March of 2021 for $700,000 in a separate property state. In June of 2021, Danielle and Neville separated. On December 31, they were still legally married but were not living together. Neville refused to file a joint return with Danielle. Danielle is living in the home and has continued to make the mortgage payments. Danielle and Neville have no children. Danielle will be itemizing her deductions. On what portion of the acquisition debt will interest be deductible on Danielle's tax return for 2021?arrow_forwardMarci purchased her home seven years ago for $175,000. She sold it at a loss for $150,000 in 2022. Which of the following statements is true? Marci can claim a loss of $25,000 because the home sale was an involuntary conversion. O Marci can claim a loss of $3,000 but must carry over the remainder to future years until the loss is completely deducted. Marci cannot claim a loss for the sale of her home. If she itemizes deductions, she can claim a loss of $25,000 on her tax return.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT