on May 20 of the current year, Tracey sells a building to Judy for 540,000. Traceys basis
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on May 20 of the current year, Tracey sells a building to Judy for 540,000. Tracey’s basis in the building is 290,000.
This area has a real property tax year that ends on June 30. The taxes are payable by September 1 of that year. On September 1, Judy pays the annual property taxes of 8,500.
Both Tracey and Judy are calendar-year cash method taxpayers. The closing agreement does not seperatley account for the property taxes. Disregard any leap year
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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