Mr. Bill sold his rental property on August 25 , 2022. Mr. Bill has always rented out
Question:
Mr. Bill sold his rental property on August 25 , 2022. Mr. Bill has always rented out the house since he purchased it.The following information is provided :
ACB / Capital Cost $ 375,000
UCC $ 240,000
Fair Market Value $ 890,000
A real estate agent is charging a sales commission on the rental property of 4 % on the FMV and the lawyer has charged a fee services to close the Mr. Bill incurred $ 6,000 in costs to stage the rental property and the real estate agent incurred $ 2,000 in advertising costs for the local newspapers.
What is the taxable income that must be included in Mr. Bill's income for his tax return in respect of the transaction?
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman