In 2018, José purchased a house for $263,000. He used the house as his personal residence. In May 2021, when the fair market value of the house was $346,900, he converted the house to rental property. what is the cost recovery for 2021?
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In 2018, José purchased a house for $263,000. He used the house as his personal residence. In May 2021, when the fair market value of the house was $346,900, he converted the house to rental property.
what is the cost recovery for 2021?
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- Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009In 2018, José purchased a house for $197,400. He used the house as his personal residence. In September 2021, when the fair market value of the house was $315,700, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ b. Under MACRS, the cost recovery period for residential rental real estate is convention. c. The cost recovery for 2021 is $ years, and it is subject to theIn 2016, José purchased a house for $325,000 ($300,000 relates to thehouse; $25,000 relates to the land). He used the house as his personalresidence. In March 2019, when the fair market value of the house was $400,000, he converted the house to rental property. What is José’s cost recovery for 2019?
- In 2018, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2021, when the fair market value of the house was $400,000, he converted the house to rental property. a. José's basis for cost recovery for the property is $300,000. b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it is subject to the mid-month convention. c. The cost recovery for 2021 is _____ ? Please answer C !In 2019, José purchased a house for $191,400. He used the house as his personal residence. In June 2022, when the fair market value of the house was $331,300, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 mid-month ✔✓ convention. c. The cost recovery for 2022 is $ 5,510 X. 191,400 ✔. ✓ years, and it is subject to theHolly purchased a house in 1999 for $390,000 (of which $40,000 is for the land). In April 2019 she decided to relocate to another state. She did not sell her house and converted the property into a rental property. The fair market value at the time of the conversion was $450,000 (of which $80,000 is for the land). Required: Calculate the depreciation expense for 2020.
- In 2020, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2023, when the fair market value of the house was $400,000, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 300,000 b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it is subject to the mid-month ✓ convention. c. The cost recovery for 2023 is $ Feedback x. Check My Work If personal-use assets are converted to business (or income-producing) use, the basis for cost recovery and for loss must be determined at the time the property is converted.Anna Osinski acquired a townhouse unit in 2019 for $120,000 (land $10,000, building $110,000). She bought the unit in order to rent it. By the end of 2021, the undepreciated capital cost of the building was $103,500. In August 2022, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $136,000 (land $12,000, building $124,000). Prior to August, her 2022 net rental income before capital cost allowance was $1,000. In September 2022, Anna purchased, for rental purposes, a residential condominium unit for $145,000 (land $15,000, building $130,000). Between September and the end of the taxation year, the condo earned net rentals of $900 before capital cost allowance. Required: Determine the Change to Anna's 2022 net income for tax purposes as a result of the above activity. Change to net income $ 0jacob lived in his house as his house as his primary residencefrom 2018, when purchased for 175,000.the assessment at that time showed the land value 15,000. he made no improvements while he lived there, and in 2021 he converted the proprty to rental use. in early 2022 he spent 15,000 on a kitchen renovation before selling it in december of 2022. what is jacobs adjusted basis in the house before any allowable depreciation when he sold it? 160,000 173717 175000 190000
- In 2019 Lulu Lowman sold her personal residence for $300,000 that she owned and lived in since 2009. When selling the property in 2019, Lulu paid the real estate agents a commission of $18,000. In 2009, Lulu had paid $200,000 for the home and currently owes $110,000 on the mortgage. Over the years, Lulu updated the kitchen and bathrooms, amounting to $44,000. When she decided to sell the home, she spent $2,000 to paint the interior, spruce up the landscaping and steam clean the carpets. What is Lulu’s (a) amount realized, (b) adjusted basis, (c) gain or loss realized, and (d) gain or loss recognized. Explain.During 2020, Sandra Von Arb acquired a four-unit apartment building for $230,000. While it was her intention to operate the building as a rental property, one month after her purchase she received an unsolicited offer to purchase the building for $280,000. She accepts the offer. Should the $50,000 be treated as a capital gain or as business income? Justify your conclusion.Anna Osinski acquired a townhouse unit in 2020 for $132,000 (land $10,000, building $122,000). She bought the unit in order to rent it. By the end of 2022, the undepreciated capital cost of the building was $113,900. In August 2023, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $149,600 (land $13,200, building $136,400). Prior to August, her 2023 net rental income before capital cost allowance was $1,100. In September 2023, Anna purchased, for rental purposes, a residential condominium unit for $159,500 (land $16,500, building $143,000). Between September and the end of the taxation year, the condo earned net rentals of $1,000 before capital cost allowance. Required: Determine the Change to Anna's 2023 net income for tax purposes as a result of the above activity. Rents condo Rents townhouse Recapture Less CCA Answer is not complete. Taxable Capital gains: 0 Change to net income
