Jennifer owns 200 acres of land on which she grows flowers for sale to local nurseries. Her adjusted basis in the land is $ 30,000. She receives condemnation proceeds of $ 20,000 from the state for 10 acres of her land on which a new freeway will be built. The state also pays her $ 30,000 for the harmful effects that the increased auto exhaust might have on her flowers. List as many tax research issues as you can to determine the tax consequences of these transactions. Do not attempt to answer any of the questions you raise. Simply identify the research issues.
Answer to relevant QuestionsIn each of the following independent situations, indicate whether the item generally would be a tax (T) or a non-tax (NT) consideration in solving a tax research or tax planning problem. a. The taxpayer would like to set up ...Formulate a search query to determine whether your client is required to include in gross income the proceeds from redemption of a tax-exempt bond, purchased in 1998 and called by the school district this year. Redemption ...Juanita Sharp purchased a large parcel of property for $ 120,000. A short time after purchasing the property, Sharp submitted plans for the division of the parcel into six lots and the construction of three single-family ...Ban Vallew has a son, Katt, by a previous marriage. Ban’s ex-wife has custody of Katt. Katt Vallew has a history of emotional problems, for which he has seen a psychiatrist for several years. This year he has become so ...The Reverend Shaman Oracle is an ordained minister in the Church of Prophetic Prophecy in Palm Desert, California. In the current year, Shaman receives payments of $ 150,000 from the church for his services. Of this amount, ...
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