Thuy bought a rental house in 2004 for $75,000. In 2011, she sells it for $86,000. Thuy

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Thuy bought a rental house in 2004 for $75,000. In 2011, she sells it for $86,000. Thuy properly deducted $22,000 in depreciation on the house before its sale. What is the amount and character of the gain on the sale?

a. Thuy also sells the following securities:

Determine the amount of tax that Thuy will pay on her capital asset transactions. Assume that she is in the 35% marginal tax ratebracket.

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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Question Posted: Mar 29, 2013 02:44 AM

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Thuy bought a rental house in 2004 for $75,000. In 2011, she sells it for $86,000. Thuy

Question:

Security Purchase DateSales Date Basis Sales Price Delphi Corporation Mondo, Inc. Horace Company 4/08/11 3,000 7/15/11 12,000 8/13/1 14,000 7,000 10,000 19,000 4/13/08 4/13/11

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Thuy realizes a 33000 gain on the sale The rental house is Section 1250 property but there is no depreciation recapture because MACRS uses straightlin...View the full answer

Concepts In Federal Taxation

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