John Johnson, single, sold his home that he had owned for 20 years for $650,000. He purchased it for $125,000 and made $50,000 of capital improvements

Emma and Ruth are sisters. Emma sold two acres of land located next to Ruth's vacation home, which she purchased 3 years ago for $48,000, to Ruth for $45,000. Ruth owned the land for 16 months and then sold it to an adjoining neighbor for $ 47,600. How much gain or loss did Ruth recognize on the sale? - $400 loss - $2,600 gain $5,600 - No gain or loss

Auntie sold some stock she purchased several years ago for $10,000 to Niece for $6,000. I. If this is Auntie's only stock transaction, she can deduct only $3,000 of the loss. II. If Niece sells the stock for $10,000, her taxable gain is $4,000. What is correct?

Explain why the loss resulting from the sale of a computer in the following three situations is treated differently for income tax purposes:a. Monica sells her personal computer at a loss of $1,300. None of the loss is deductible.b. Omar sells a computer used in his carpeting business at a loss of $4,300. The loss is fully deductible.c. Jerry sells his computer at a loss of $3,800. Jerry used the computer to keep track of his investment portfolio. Only $3,000 of the loss is deductible.

Luis sold a rental house he had owned for several years. He claimed $24,787 in depreciation over the years. He claimed the allowable depreciation each year except the first year he owned the house, when he could have claimed $1,342 but failed to do so. Luis must adjust his basis in the house by the amount of depreciation allowed or allowable. What is this amount? $1,342 $23,445 $24,787 $26,129

In 2006, Douglas purchased an office building for $500,000 to be used in his business.  He sells the building in the current tax year.  Explain whether his recognized gain or loss for regular income tax purposes will be different from his recognized gain or loss for AMT purposes.

Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $305,000. He sold the home on January 1, 2020, for $326,400. How much gain must Troy recognize on his home sale in each of the following alternative situations?   d. Troy rented out the home from January 1, 2007, through December 31, 2015. He lived in the home as his principal residence from January 1, 2016, through December 31, 2016. He rented out the home from January 1, 2017, through December 31, 2017, and lived in the home as his principal residence from January 1, 2018, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.

Chuck sold a tractor to a dealer for $16,000. He bought the tractor for $25,500 several years ago and has claimed $12,000 of depreciation deduction on the tractor. What is the amount and character of his gain or loss from the sale of the tractor?

Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $572,600. He receives condemnation proceeds of $543,970 and invests the proceeds in stocks and bonds. If an amount is zero, enter "0". a. Calculate Yancy's realized and recognized gain or loss. Yancy's realized loss is $________________, and Yancy's recognized loss is $_________________. b. If the condemnation proceeds are $598,367, what are Yancy's realized and recognized gain or loss? Yancy's realized gain is $_______________, and Yancy's recognized gain is $_______________. c. Assume the house is rental property. Yancy's adjusted basis is $572,600 and he receives condemnation proceeds of $543,970 and invests the proceeds in stock. What are Yancy's realized and recognized gain or loss? Yancy's realized loss is $______________, and Yancy's recognized loss is $________________

Margaret and Johnny, a married couple, purchased their primary residence for $250,000 in June 2005.  They sold their home for $240,000 on August 3, 2022.  What is the loss amount they can deduct on their taxes?