Martin originally acquired his farm many years ago for $102,000. This year, Martin sold the farm...
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Martin originally acquired his farm many years ago for $102,000. This year, Martin sold the farm for its fair market value of $450,000 to his adult son, Jasper. He allowed Jasper to give him a down payment of $75,000 and told him that he could pay the rest in equal annual installments of $25,000 over the next 15 years. Martin was unable to make use of the lifetime capital gains exemption for qualified farm properties because he had already used it in a previous transaction. How much can Martin claim as a capital gains reserve in the year of the sale? Martin originally acquired his farm many years ago for $102,000. This year, Martin sold the farm for its fair market value of $450,000 to his adult son, Jasper. He allowed Jasper to give him a down payment of $75,000 and told him that he could pay the rest in equal annual installments of $25,000 over the next 15 years. Martin was unable to make use of the lifetime capital gains exemption for qualified farm properties because he had already used it in a previous transaction. How much can Martin claim as a capital gains reserve in the year of the sale?
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To calculate the capital gains reserve that Martin can claim in the year of the sale we need to dete... View the full answer
Related Book For
Foundations Of Financial Management
ISBN: 9781259265921
11th Canadian Edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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