This year Dan and Mike purchased realty for $218,500 and took title as equal tenants in common. However, Mike was able to provide only $53,500 of the purchase price and Dan provided the remaining $165,000. Required: a-1. Has Dan made a complete gift to Mike? a-2. What is the amount of the gift?

This year Dan and Mike purchased realty for $218,500 and took title as equal tenants in common. However, Mike was able to provide only $53,500 of the purchase price and Dan provided the remaining $165,000. Required: a-1. Has Dan made a complete gift to Mike? a-2. What is the amount of the gift?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 44P

See similar textbooks

Related questions

Q: Roberto has received various gifts over the years and has decided to dispose of the following assets…

Q: a. Janette and Lola, who are sisters, acquire an apartment building, ownership listed as joint…

A: Furnished % = $1200000/$2000000 =0.60 Or 60%

Q: Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information: Fair Market Value - $300,000 The sale price of the duplex - $312000

Q: Roberto has received various gifts over the years and has decided to dispose of the following assets…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Would you advise Mr. X that he could treat this as a good § 1031 LKE? Why or why not? What was Mr.…

A: Section 1031 explains that tax benefits of capital gain can be claimed when there is an exchange of…

Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following…

A: Amount realized means the total amount of cash received by selling of an asset. It is calculated by…

Q: On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's…

A: GIVEN On September 30 of last year, Rex received some investment land from Holly as a gift.…

Q: . Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000…

A: Given information: Adjusted basis - $279,000 Fair Market Value - $300,000

Q: What is the Amount Realized, Type and amount of Basis, and Gain or Loss of the following Lois gives…

A: Gift of the property would be considered as the property which is transferred for other person for…

Q: Rachelle owned land with a basis of $200,000, subject to a mortgage of $125,000.  She exchanged the…

A: Lets understand the basics. When tranaction qualified for like kidn excghange treatment then gain…

Q: Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During…

A: To extent of depreciation will be treated as section 1250 Unrecaptured gain. Balance gain is…

Q: Kase, an individual, purchased some property in Potomac, Maryland, for $150,000 approximately 10…

A: In the United States, a like-kind exchange, also known as a 1031 exchange, is a transaction or…

Q: 2021, Ruth transfers the following property for an 80% interest in RGB corporation (1,000 shares):…

A: Given data Ruth transfers the followiing property for an 80% interest in RGB corporation (1,000…

Q: Your supervisor has asked you to research the following situation concerning Owen and Lisa…

A: Memorandum of gain recognition of O & L Mr. O & M L Cordoncillo Denver, U-SA Sub:…

Q: in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3,…

A: GENERAL POINTS - ** UPON THE SALE OF ASSET IF THE SALE PROCEEDS EXCEED THE COST OF ASSET THEN THE…

Q: Moran owns a building he bought during year 0 for $237,000. He sold the building in year 6. During…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: This year Gerry's friend, Dewey, was disabled. Gerry paid $14,500 to Dewey's doctor for medical…

A: According to IRS, Any transfer to an individual either directly or indirectly where full…

Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following…

Q: Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information: Adjusted basis - $86,000 Fair Market Value - $300,000

Q: In year 0, Patrice purchased a machine to use in its business for $112,000. In year 3, Patrice sold…

A: Cost of machine= $112,000 Depreciation = $64,000 Book value of machine at Year 3 = $112,000 –…

Q: Kaylee transfers land to Mer Corporation with a basis of $300,000. The property is worth $700,000.…

A: Taxable income is the total income earned by an individual or a company on which he/she has to pay…

Q: After settlement of estate of Nicanor, it was determined that the net distributable estate amounted…

A: Answer: Net Distributable estate = Php 10,000,000 Inday - Conjugal Share is Php 5,000,000 and…

Q: Kase, an individual, purchased some property in Potomac, Maryland, for $228,000 approximately 10…

A: Unrealized gains and losses: These are gains and losses which are unrealized and are the result of…

Q: Moran owns a building he bought during year O for $227,00O. He sold the building in year 6. During…

A: The question is based on the concept of Financial Accounting.

Q: How much is the gross estate if the property relationship is conjugal partnership of gains is

A: As per our protocol we provide solution to the one question only but as you have asked two multiple…

Q: True/False. T-1, a lawyer, drafts a will for T-2, in exchange for which T-2 (also a lawyer) drafts a…

A: 1. The answer is True. 2. The answer is False. 3. The answer is False.

Q: ennifer Thompson is the grantor of the Jennifer Thompson Trust, a revocable grantor rust. Ten years…

A: For calculation of trust basis: Original investment in the property. Add: The cost of major…

Q: In the year of her death, P owned a rental property – land (FMV $300,000; cost $230,000), building…

A: Taxable income is the income of a business that is liable to taxation. Different economies define…

Q: Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and…

A: There is no gain or loss as the fair market value of both duplex and triplex.

Q: Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information: Adjusted basis for triplex ( in the hands of Carl) $279,000 Fair Market Value -…

Q: Jason and Alicia Johnston purchased a home in Austin, Texas, for $655,000. They moved into the home…

A: Concept used: Jason and Alicia Johnston qualify to exclude up to $500,000 of gain under the "Married…

Q: Maria, Bakka and Osing are the heirs of Jaime who died on September 1, 2019/ The properties of jaime…

A: The inherited rental property will be treated as an investment property by the IRS.

Q: Many years ago James and Sergio purchased property for $945,000. Although they are listed as equal…

A: Partnership agreements come in a variety of forms. For example, in a partnership, all partners…

Q: To whom is the income allocated, why, and how much: When Worf’s parent’s died, the made him the…

A: In the above question given that Worf parent's made him beneficiary of a trust which holds real…

Q: On September 1, 20X2, Tanya, Cecille, and Marie formed a partnership by combining their separate…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Aiden dies first and is survived by Chloe, his sisters, and his wife. Aiden dies after Chloe, but…

Q: Lily exchanges land used in her business for a different parcel of land to be used in her business.…

A: Ans. Whenever any asset is exchanged for another asset, the fair market value of the asset foregone…

Q: At the time of his death on July 9, Aiden held rights in the following real estate: The apartment…

A: The total dollar value of a person's assets at the time of death is referred to as the "gross…

Q: conjugal property

A: Donation tax is the tax which is charged on the donations given by the donor not by the recipient of…

Q: Architect, a cash basis taxpayer, has been conducting a business as a sole proprietorship for…

A: Given that: Architect - cash basis taxpayer Adjusted basis of assets = $60,000 Fair market value of…

Q: Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information: Adjusted basis - $86,000 Fair Market Value - $300,000

Q: During the current year, Daniel James exchanges land used in his business for a new parcel of land.…

A: As, the land is being exchanged for land, so it will be considered as a like-kind exchange. Whenever…

Q: Randy established a trust, reserving in himself the power to terminate the trust if he is not…

A: Here in this scenario Randy establish the trust and reserves himself power to terminate the trust…

Q: Dan receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is…

A: Given: Basis of the duplex land - $110,000 Fair market value (FMV) of land & building -…

Q: This year, Leron and Sheena sold their home for $1,036,000 after all selling costs. Under the…

A: Taxable Income: It is an income that helps in calculating the tax liability as per the slab rate…

Q: Moran owns a building he bought during year O for $227,000. He sold the building in year 6. During…

A: SOLUTION DEPRECIATION MEANS MONETARY VALUE DECREASES OVER TIME DUE TO USE ,WEAR ,TEAR AND…

Q: a. Bolivar and Collen purchase real estate as tenants in common. Of the $250,000 purchase price,…

A: Solution:- Gift :- A gift is property, money, or assets that one person gives to another while…

Question

100%

This year Dan and Mike purchased realty for $218,500 and took title as equal tenants in common. However, Mike was able to provide
only $53,500 of the purchase price and Dan provided the remaining $165,000.
Required:
a-1. Has Dan made a complete gift to Mike?
a-2. What is the amount of the gift?
Complete this question by entering your answers in the tabs below.
Req A1
Req A2
What is the amount of the gift?
Amount of gift

Expert Solution

Introduction :

Equal tenants = Dan and Mike

Purchased Realty = $ 218500

Mike's contribution = $ 53500

Dan's contribution = $ 165000

The question says that Dan and Mike were equal tenants as per title but the contribution is not the same.

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use the following information for the next three (3) questions: Ms. Bea a licensed real estate broker comes to you with the following records and transactions: Transaction #1. Land with TCT NO. 1900238 was sold to Mr. Bean for P 5,000,000 by Mr. Budotz on September 08, 2019 in Manila evidenced by a deed of sale executed in Bulacan. The cost of the land is P 2,000,000 which is equal to its market value stated in the tax declaration and the property is located in Makati. Transactions #2. Land with TCT No. 1877234 was sold to Mr Gerarld for P 10,000,000 by Mr. Joshua on November 04, 2019 in Cavite evidenced by a deed of sale executed in Caloocan. The cost of the land is P 6,000,000 which is equal to its market value stated in the tax declaration and the property is located in Manila Additional Information Bea called the respective RDO's of each transaction to determine how much is the zonal value of each land sold. RDO's reply is P 6,000,000 and P 9,800,000, respectively, On December 14,…
Last year Nate opened a savings account with a deposit of $17,250. The account was in the name of Nate and Derrick, joint tenancy with the right of survivorship. Derrick did not contribute to the account, but this year he withdrew $5,750. Required: a-1. Has Nate made a complete gift? a-2. What is the amount of the complete gift, if any, and when was the gift made? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the complete gift, if any, and when was the gift made? Amount of complete gift At the time of withdrawal
H3. Grayson purchased his primary residence for $260,000. As part of the closing procedure, he paid $2,900 in loan origination fees, $750 to a lawyer to review the purchase contract and other closing papers, $250 for a property survey, and $1,200 for title insurance. He also gave the real estate agent a $100 gift certificate in appreciation for her hard work. What is Grayson's basis in the residence? Please show proper step by step calculation
R Carolyn has an AGI of $39,500 (all from earned income) and two qualifying children and is filing as a head of household. What amount of earned income credit is she entitled to? (Exhibit 8-11) 0 50 O $2,085 O $3,657 O $4,008 O $6.164 % T Q Search (0 & V 8 CO (O
please dont provide answer in image format thank you On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? Note: Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. a. Land sold for $32,000
J1. Raghu Purchased a house in 2021 to use as a rental. What is the spaces in the property if his expenses were as follows: $250,000 purchase price 30,000 which was a attributed to the land value $2500 point paid on the mortgage $250 legal fees $175 title insurance $1200 home owners insurance $1500 previously due real estate tax
Required information Skip to question [The following information applies to the questions displayed below.] Bart is the favorite nephew of his aunt Thelma. Thelma transferred several items of value to Bart. For each of the following transactions, determine the effect on Bart’s gross income. (Leave no answer blank. Enter zero if applicable.) a. Thelma gave Bart an auto worth $26,500. Thelma purchased the auto three years ago for $20,750.
! Required information [The following information applies to the questions displayed below.] Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $295,000. He sold the home on January 1, 2023, for $323,400. How much gain must Troy recognize on his home sale in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. d. Troy rented out the home from January 1, 2007, through December 31, 2018. He lived in the home as his principal residence from January 1, 2019, through December 31, 2019. He rented out the home from January 1, 2020, through December 31, 2020, and lived in the home as his principal residence from January 1, 2021, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Recognized gain
Saved Help Required Information [The following information applies to the questions displayed below.] Steve Pratt, who is single, purchased a home in Spokane, Washington, for $415,000. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $767,500. (Leave no answer blank. Enter zero if applicable.) b. Assume the original facts, except that the home is Steve's vacation home and he vacations there four months each year. Steve does not ever rent the home to others. What gain must Steve recognize on the home sale? Recognized gain on sale
H1. profile-image Carlos owns a property which he has rented. During 2021, the property generated $24,000 in rental income. Carlos incurred the following expenses related to rental operations: • Depreciation $5,000 • Real estate tax 2,000 Utilities (water and electricity) Maintenance 3,000 • Boat expenses which Carlos uses to 1,500 meet clients and sign contracts 5,500 Determine the net income from rental operations that Carlos will include in his individual income tax return. Submit your computations.
H2. profile-image Oliver, an insurance agent and sole practitioner, decided to sell his insurance agency to Grace. Under the terms of the sales agreement, Grace paid $8,000 for the goodwill that Oliver had garnered throughout his insurance career. The purchase was completed on March 3, 2021. What is Grace's 2021 deduction for amortization?
Hw.19. Sophia sold a painting that she held as an investment on an online auction website for $100. She bought the painting for $20 at a garage sale years ago. Sophia should report what amount as a capital gain on her Schedule D (Form 1040)? A. $0 B. $20 C. $80 D. $100