Ms. Stacy Lopez owns a city home in Vancouver, as well as a chalet at the Cyprus Mountain ski area. The city home was purchased in 2009 at a cost of $180,000. The chalet was purchased in 2015 for $91,000. On August 1, 2022, the house is sold for $350,000 and the chalet is sold for $250,000. A real estate commission of 5 percent was paid on each sale. She has spent some time in each property in every year from 2015 through 2022. Determine the minimum capital gain that she must report for 2022 as a result of the sale of the two properties.
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- Colin McGregor and his wife Alice own a house in Kelowna as well as a condo at Big White. They purchased the house in Kelowna in 1997 for $270,000 and the condo in 2012 for $190,000. Both properties have been used exclusively by the McGregors. Early in 2021 the McGregors retired and put both properties up for sale. The condo sold in April for $420,000 and the house sold in July for $750,000. Determine the minimum capital gain that must be reported on the sale of the two properties.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 $ 0Anna 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
- One of Courtney’s clients was interested in building a shopping center on a tract of land she owned in Lincoln County. Courtney inherited the property from her uncle when he died on June 6, 1999. At that time, the land was valued at $40,000. It has since been rezoned for commercial use and has a current value of $200,000. On February 10, 2019, Courtney exchanged the Lincoln parcel for a similar tract in Minnehaha County worth $190,000 and cash of $10,000. On September 2, 2019, Courtney sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from the same uncle who died in 1999 and was valued at $30,000 on June 6, 1999. Under the terms of the sale, Courtney received cash of $20,000 and a note receivable to be paid in four equal installments at 1-year intervals from the date of sale. Each note calls for the payment of $25,000 plus simple interest of 8%. To the extent allowed by law, Courtney wants to defer recognition of gain for as…During 2022, Mr. Richmond sold his two residences, in order to purchase a larger home in an expensive suburb. The following facts relate to these two residences: Date purchased Cost Sales Commission Paid Sale Proceeds City home 2013 $75,000 $20,000 $250,000 Cottage 2008 $18,500 $12,500 $200,000 Required: Determine Mr. Richmond’s net income for tax purposes as a result of the above information. Show all of your calculations.Peter purchased a rental property in 2010 at a cost of $650,000 ($460,000 for the building and $190,000 for the land). He had to pay the notary ($1,150), the inspection ($780) and the “Welcome Tax” ($7,100). The rental property was profitable for all years. As of January 1, 2020, the UCC of Class 1 was $427,330. Peter sold the property in 2020. The selling price was $(870,000) (70% allocated to the building; 30% to the land). When selling the property, James had to pay for the evaluation ($350) and the commission to the real estate agent ($20,500). Required: a) Calculate the taxable capital gain on the sale of the property. b) Calculate the recapture of CCA.
- Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: $ 1,000 Insurance Advertising expense Mortgage interest Repairs & maintenance Property taxes 500 3,500 900 650 Utilities Depreciation 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 Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions…Jackie, a resident citizen, purchased a parcel of land, measuring 1,000 square meters at a price of P2,000,000), on January 5, 2021. Due to the construction of a subway station a few hundred meters away from Jackie's parcel of land, the fair market value of the land increased to P15,000,000 by 2022. Jackie procured an appraiser to determine the new value of the land, and the appraiser affirmed the increase to P15,000,000. The land was used as a collateral to secure a loan amounting to P10,000,000 by way of a real estate mortgage. The proceeds of the loan were used by Jackie to construct buildings on the land for leasing. Is Jackie subject to income tax? A. No. Loans are exempt from all internal revenue taxes. B. Yes. The amount that will be subject to income tax is P13,000,000. C. Yes. The amount that will be subject to income tax is P15,000,000. D. No. The increase in value of the land is not subject to income tax.Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses inconnection with his condo:Insurance $ 1,000Mortgage interest 7,500Property taxes 3,200Repairs and maintenance 800Utilities 1,700Depreciation 5,700During the year, Tyson rented the condo for 100 days, receiving $25,000 of gross income. He personallyused the condo for 60 days. Assume Tyson uses the Tax Court method of allocating expenses to rental useof the property. Tyson itemizes deductions, and the sum of his itemized deduction for non-home businesstaxes and the real property taxes allocated to rental use of the home is less than $10,000. What is Tyson'snet rental income for the year (assume this is not a leap year)?
- Tina is tax resident in Country A. She acquired the following assets in 2017: (a) two houses located in Country A. The cost of each house was $10 million. (b) a house located in Country B. The cost of the house was $25 million. (C) a motor vehicle for $3 million. (D) a painting. She paid $2.5 million. (E) Government bond issued by Country A for $500,000. In 2021, she disposed of all the properties and received the following dispossl proceeds: Painting - $1million House in Country A - $25 million each House in Country B - $35 million Motor vehicle $3.5 million Government bond- $1 million. In Country A, full tax relief is available for the principal place of residence. A annual exemption of $500,000 is also available. Tina incurred agency fees of $180,000 and $100,000 on the disposal of the houses located in Country A and Country B respectively. Prior to disposing the house in Country B , she incurred repair expenses of $2 million. Tina also incurs a monthly…Tina is tax resident in Country A. She acquired the following assets in 2017: (a) two houses located in Country A. The cost of each house was $10 million. (b) a house located in Country B. The cost of the house was $25 million. (C) a motor vehicle for $3 million. (D) a painting. She paid $2.5 million. (E) Government bond issued by Country A for $500,000. In 2021, she disposed of all the properties and received the following disposal proceeds: Painting - $1million House in Country A - $25 million each House in Country B - $35 million Motor vehicle $3.5 million Government bond- $1 million. In Country A, full tax relief is available for the principal place of residence. An annual exemption of $500,000 is also available. Tina incurred agency fees of $180,000 and $100,000 on the disposal of the houses located in Country A and Country B respectively. Prior to disposing the house in Country B, she incurred repair expenses of $2 million. Tina also incurs a monthly maintenance of…Jared and Melissa are married. They have owned their primary residence for 10 years and have lived in it the entire time. They paid $350,000 for the house and land and it is now worth $ 900,000. Due to the property's prime location in Stephenville, the City of Stephenville has decided to "take" the property and turn it into a public park and venue. The City sends Jared and Melissa a letter offering to buy the property for $800,000. Jared and Melissa reject the offer and the case goes to trial where a judge determines the value to be $950,000 and orders the City to pay that amount for the property it claimed using eminent domain. After Jared and Melissa receive the $950,000, they decide not to buy a new house and instead they live in their camper and travel around the country. Do Jared and Melissa have to pay tax on the money they received? Be sure to fully explain your analysis.