Suppose the first installment is to be made on December 31, 2021 instead, can Jackie declare his income on installment?
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- Jackie sold to Zhakie a parcel of land classified as a capital asset located in the province of Tarlac for P6,000,000 on six equal semiannual installments of P1,000,000 each. The first installment will be paid on June 30, 2021, the second installment six months after, and so on, until the final installment on December 31, 2023. Can Jackie declare his income on installment? a. Yes. The initial payments are not at least 25%. The initial payments are only 17% of the selling price. b. No. The initial payments exceeded 25%. The initial payments are 33% of the selling price. c. Yes. The initial payments did not exceed 25%. The initial payments are only 17% of the selling price. d. No. The initial payments are at least 25%. The initial payments are 33% of the selling price.In 2019, the community property of spouses A and B totaled P10,000,000.In January 2020, during marriage, X donated a property located in Manila to spouses A and B worth P2,000,000.In March 2021, A died due to COVID 19. Unpaid funeral expenses and Judicial expense are 200,000 and 300,000, respectively. What is the net distributable estate of A?Wilson purchased a large piece of land on the edge of Sherwood Park in 1989 for $150,000. He sold it on March 1, 2020 to a developer for $650,000. He received a down payment of $250,000 at the time of sale. The remaining $400,000 is to be paid to him in equal annual instalments of $100,000 beginning March 1, 2021. Calculate Wilson's maximum capital gains reserve in 2020. Show work in the space below.
- Suzy sells an office building and the associated land on May 10, 2022. Under the terms of the sales contract, Suzy is to receive $450,000 in cash. The purchaser is to assume Suzy's mortgage of $175,000 on the property. To assist the purchaser, Suzy agrees to pay $12,000 of the purchaser's closing costs and the broker's commission on the sale is $37,500. What is the amount realized by Suzy from this sale? O $625,000 O $400,500 O $450,000 O $575,500Steve Drake sells a rental house on January 1, 2022, and receives $100,000 cash and a note for $50,000 at 7-percent interest. The purchaser also assumes the mortgage on the property of $30,000. Steve's original cost for the house was $175,000 on January 1, 2014, and accumulated depreciation was $30,000 on the date of sale. He collects only the $100,000 down payment in the year of sale. a. If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain. b. Assuming Steve uses the installment sale method, complete Form 6252 on Page 8-57 for the year of the sale. c. Assuming Steve collects $5,000 (not including interest) of the note principal in the year following the year of sale, calculate the amount of income recognized in that year under the installment sale methodJacob has the following items of income in 2021: He has a salary of $100,000 He sells land for $12,000. The original purchase price is $4,000 He receives interest from a City of London Bond of $7,000 What is Jacob’s Gross Income? Group of answer choices a)$100,000. b)$107,000. c)$112,000. d)$115,000.
- On February 2022, Mr. and Mrs. Magpayo donated a conjugal parcel of land to their son, Pedro who was getting married within six months after the date of donation. The fair market value of the property at the time of donation was P5,000,000. Its fair market value at the time of marriage was P5,500,000. The donated property was subject to P1,000,000 mortgage assumed by the donors. 1. How much is the net taxable gift of Mr. Magpayo?On February 2022, Mr. and Mrs. Magpayo donated a conjugal parcel of land to their son, Pedro who was getting married within six months after the date of donation. The fair market value of the property at the time of donation was P5,000,000. Its fair market value at the time of marriage was P5,500,000. The donated property was subject to P1,000,000 mortgage assumed by the donors. How much is the net taxable gift of Mr. Magpayo? a. 2,500,000 b. 2,490,000 c. 2,740,000 d. 2,250,000Sandra sold a plot of land to Roberto on June 30, 2022. The sales price was $50,000, and Sandra's basis in the property was $30,000. Roberto made one payment of $10,000 during 2023 and agreed to pay an additional $10,000 each year, plus interest, for the next four years. Using the installment method, what is Sandra's taxable gain for 2023? $4,000 $10,000 $20,000 $50,000
- Brian acquired a rental house in 2003 for a cost of $80,000. Straight-line depreciation on the property of $26,000 has been claimed by Brian. In January 2019, he sells the property for $120,000, receiving $20,000 cash on March 1 and the buyer's note for $100,000 at 10 percent interest. The note is payable at $10,000 per year for 10 years, with the first payment to be received 1 year after the date of sale. Calculate his taxable gain under the installment method for the year of sale of the rental house. In your computations, round any division to two decimal places. Gain reportable in 2019 is $.On June 1, 2020, Father sold land to Son for $300,000. Father reported the gain by the installment method, with the gain to be spread over five years. In May 2022, Son received an offer of $400,000 for the land, to be paid over three years. What would be the tax consequences of Son’s sale? How could the tax consequences be improved?Sally owns real property for which the annual property taxes are $9,000. She sells the property to Kate on March 9, 2021, for $550,000. Kate pays the real property taxes for the entire year on October 1, 2021. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $ 1,652 and Kate can deduct $ 7,348 of the property taxes. b. What effect does the property tax apportionment have on Kate's adjusted basis in the property? Kate's adjusted basis for the property is increased by the $ 1,652 she paid that is apportioned to Sally. c. What effect does the apportionment have on Sally's amount realized from the sale? Sally paid none of the real property taxes and is permitted to deduct the apportioned share of $ 542,652 Her amount realized is increased by this amount. d. How would the answers in parts (b) and (c) differ if Sally paid the…