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?

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?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 3DQ

See similar textbooks

Similar questions

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
Grayson purchased his primary residence for $260,000 as part of the closing procedure. He paid $2900 in loan origination fees, $750 to a lawyer to review the purchase contract and other closing papers, $250 for a property survey. In $1200 for title insurance, he also gave the real estate agent $100 gift certificate in appreciation for her hard work. What is Grayson's basis in the residence? Is it $260,000 or $261,200 or 262,200? or $263,000.
Angela purchased a rental property on August 1, 2021, for $172,400. She hired an architect to draw up remodeling plans, and then spent 55 hours doing the actual demolition and construction herself. Which of the following expenses affect her adjusted basis? Mortgage insurance premiums of $1,150, included at closing. $275 in appraisal fees paid at closing and required by her lender. The fair market value of remodeling labor done by Angela. [$35/hour x 55 hours = $1,925] Fees charged by the architect, totaling $975. Philip purchased a small apartment complex in 2021. He paid $375,000 for it; there was no specified value for the land in the contract. The most recent real estate assessment had the property valued at $350,000, of which $308,000 was for the building and $42,000 for the land.Assuming no other expenses, what is Philip's basis in the apartment building? $308,000 $330,000 $350,000 $375,000 please help me
Question 31 of 35. This year, Manuel purchased, and placed into service, a single-family rental house. He paid the following amounts to acquire his property: $325,000 sales price (which included $20,000 for the land). • $4,200 for legal fees and recording costs (which includes $4,000 allocated to the building and $200 allocated to th land.) . $250 to have the property professionally cleaned before the house was placed into service. What is Manuel's basis for depreciation in the house? $305,000 $309,250 $329,000 $329,250 X Mark for follow up
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
Stephen purchased a rental property on 03 August 2020 and has rented the property from this date.He incurred the following expenses when purchasing the property –> $6,320 Lender’s Mortgage Insurance> $15,987 Stamp duty on transfer of the property> $1,500 Mortgage broker’s fee> $750 Conveyancing fees> $600 Bank loan establishment fee> $700 Stamp duty on the mortgageCalculate how much Stephen can claim in borrowing costs for the 2021 year and select the correct answer below. $1,766 $1,658 $1,311 $1,442 $1,879
Oisha gave a parcel of realty to Julie valued at $197,500 (Oisha purchased the property five years ago for $83,000). a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $204,800. What is the amount of her gain or loss, if any, on the sale? Answer is complete but not entirely correct. $ 182.500 $ 121,800 a. Amount of taxable gift b. Amount of gain
Download Schedule D of 1040, given the following information, complete through part III of Schedule D: Nicholas Jack with social security number 555-25-5566. He has an STCL carryover of $250 from last year. Land was sold for $40,000. The land was received as a property settlement on January 10, 2020, when the land’s FMV amounted to $35,000. His ex-wife’s basis for the land, purchased on January 10, 2004, was $20,500. Marketable securities held as an investment were sold for $25,000. The securities were inherited from his uncle, who died on April 12 of the current year when FMV of the securities was $26,000. The uncle purchased the securities on July 12, 2000, for $10,000.
Nicky receives a car from Sam as a gift. Sam paid 48,000 for the car. He had used it for business purposes and had deducted 10,000 for depreciation up to the time he gave the car to Nicky. The fair market value of the car is 33,000. a. Assuming that Nicky uses the car for business purposes, what is her basis for depreciation? b. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 32,500. What is her recognized gain or loss? c. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 20,000. What is her recognized gain or loss?