Pedro sells investment land on September 1, 2014. Information pertaining to the sale follows: Adjusted basis $25,000
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Adjusted basis $25,000
Selling price 90,000
Selling expenses 1,500
Down payment 12,000
Four installment payments 15,000
Mortgage assumed by the buyer 18,000
Each installment payment is due on September 1 of 2015, 2016, 2017, and 2018 (ignore interest). Determine the tax consequences in 2014, 2015, 2016, 2017, and 2018.
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Related Book For
Fundamentals Of Taxation 2015
ISBN: 9781259293092
8th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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