I have a attached a document, can you do the solution to question 1 for me please?

I have a attached a document, can you do the solution to question 1 for me please?

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Review Problems
1.
In 2011, Linda sold her personal residence to Tom for $300,000.
Before the sale, Linda paid the
real estate taxes of $8,030 for the calendar year.
For income tax purposes, the deduction is
apportioned as follows: $4,400 to Linda and $3,630 to Tom.
a.
What is Tom’s basis in the residence?
b.
What is Linda’s amount realized from the sale of the residence?
c.
What amount of real estate taxes can Tom deduct?
d.
What amount of real estate taxes can Linda deduct?
2.
Freda, who has AGI of $100,000 in 2011, contributes stock in Tulip Corporation (a publicly
traded corporation) to Central State University, a qualified charitable organization.
The stock is
worth $59,000, and Freda acquired it as an investment two years ago at a cost of $44,000.
a.
What is the total amount that Freda can deduct as a charitable contribution, assuming
she carries over any disallowed contribution from 2011 to future years?
b.
What is the maximum amount that Freda can deduct as a charitable contribution in
2011?
c.
What factors should Freda consider in deciding how to treat the contribution for
Federal income tax purposes?
d.
Assume Freda dies in December 2011.
What advice would you give the executor of
her estate with regard to possible elections that can be made relative to the
contribution?
3.
Theresa and Oliver, married filing jointly, and both over 65 years of age, have no dependents. Their
2011 income tax facts are:
Theresa’s wages
$145,000
Oliver’s wages
33,000
Short-term capital gain
36,000
Long-term capital loss
(47,000)
What is their taxable income for 2011?

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4.
On January 18, 2010, Martha purchased 200 shares of Blue Corporation stock for $2,000. On
November 11, 2011, she sold short 200 shares of Blue Corporation stock which she borrowed
from her broker for $2,300. On February 10, 2012, Martha closed the short sale by delivering the
200 shares of Blue Corporation stock which she had acquired in 2010. On that date, Blue
Corporation stock had a market price of $4 per share. What is Martha’s recognized gain or loss
and its character in 2011? In 2012?
5.
The chart below details Sheen’s 2009, 2010, and 2011 stock transactions. What is the capital loss
carryover to 2011 and what is the net capital gain or loss for 2011?
Tax Year
Short-term
Capital Gains
Short-term
Capital Losses
Long-term
Capital Gains
Long-term
Capital Losses
2009
$
4,000
$
6,000
$
2,000
$13,000
2010
$16,000
$14,000
$23,000
$28,000
2011
$55,000
$52,000
$67,000
$33,000
6.
Martha is single with one dependent and files as head of household.
She had 2011 taxable
income of $45,000 which included $16,000 of 0%/15% net long-term capital gain.
What is her
tax on taxable income using the alternative tax on net long-term capital gain method?
7.
Harold is a head of household, has $27,000 of taxable income in 2011 from non-capital gain or
loss sources, and has the following capital gains and losses:
28% long-term capital gain
$
4,300
28% long-term capital loss
(2,000)
0%/15% long-term capital gain
19,000
Short-term capital loss
(1,700)
What is Harold’s taxable income and the tax on that taxable income?
8.
Robert sold his ranch which was his principal residence during the current taxable year.
At the date of the sale, the ranch had an adjusted basis of $460,000 and was encumbered
by a mortgage of $200,000. The buyer paid him $500,000 in cash, agreed to take the title
subject to the $200,000 mortgage, and agreed to pay him $100,000 with interest at 6
percent one year from the date of sale. How much is Robert’s recognized gain on the
sale?
9.
Ollie owns a personal use car for which he originally paid $42,000. He trades the car in on a
sports utility vehicle (SUV) paying the automobile dealer cash of $24,000. If the negotiated price
of the SUV is $45,000, what is Ollie’s recognized gain or loss and his adjusted basis for the
SUV?

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