Dan bought his Los Angeles property last December, and it’s now August. The property is encumbered with the liens shown below. Indicate the order of priority in which the liens would be paid off in case of foreclosure. Do not simply use the date (there are other considerations) • Deed of trust for purchase loan (recorded December 19)  • Deed of trust for equity loan (recorded May 31)  • Property tax lien for current tax year (attached January 1)  • Judgment lien (attached June 2)  • Mechanic’s lien for work begun on May 22 (recorded June 15)

When taxpayers borrow money to acquire investments, the interest expense they pay on the loan is and the deduction is limited to the taxpayer's income for the year. expense

Subject : Accounting

! Required information [The following information applies to the questions displayed below.] Charles has AGI of $46,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land County real estate tax on the land School district tax on the land City special assessment on the land (new curbs and gutters) State tax on airline tickets (paid on vacation) Local hotel tax (paid during vacation) a. Suppose that Charles holds the land for appreciation. $1,370 1,760 795 Deductible taxes from AGI 714 Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.) 360 224

Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed barbarous 20,000 mortgage on the property. What is the amount of Barbara's gain, and where on form 4797 will she report the sale?

Derek purchases a small business from Art on August 30, 2022. He paid the following amounts for the business: Fixed assets Goodwill Covenant not to compete Total $256,600 51,320 64,150 $372,070 a. How much of the $372,070 purchase price is for Section 197 intangible assets? b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations.

[The following information applies to the questions displayed below.] Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,000 500 3,500 900 650 950 8,500 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the IRS method of allocating expenses to rental use of the property.

Subject : Accounting

Required information [The following information applies to the questions displayed below.] Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,400. (Leave no answer blank. Enter zero if applicable.) a. Last year Louis claimed itemized deductions of $12,650. Louis's itemized deductions included state income taxes paid of $1,750 and no other state or local taxes. Refund to be included in gross income

Required Information [The following information applies to the questions displayed below.] Lauren owns a condominium. In each of the following alternative situations, determine whether the condominium should be treated as a residence or a nonresidence for tax purposes. d. Lauren lives in the condo for 22 days and rents it out for 302 days. O Residence O Nonresidence Prev 12 of 15 Next