A business building on which straight-line depreciation of $13,000 was taken is sold on the installment basis for $100,000 with $20,000 down and four yearly installments of $20,000 plus interest. The adjusted basis for the building is $35,000 at the time of the sale. The building had been held for more than 12 months. What are the amount and nature of the recognized gain?
Answer to relevant QuestionsNicholas owns business equipment with a $155,000 adjusted basis; he paid $200,000 for the equipment, and it is currently worth $173,000. Nicholas dies suddenly, and his son Alvin inherits the property. What is Alvin's basis ...Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2013. The bonds had been issued with $80,000 of original issue discount because Peach was in financial difficulty in 2013. On ...Sam and Elizabeth Jefferson file a joint return and have three children-all of whom qualify as dependents. If the Jeffersons have AGI of $327,000, what is their allow able deduction for personal and dependency exemptions for ...Which of the following individuals are required to file a tax return for 2014? Should any of these individuals file a return even if filing is not required? Why or why not? a. Patricia, age 19, is a self-employed single ...In choosing between the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. ...
Post your question