Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase price. Instead, Olivia pays the landowner $12,300 to obtain an option to buy the land for $246,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $15,375. What is the amount and character of Olivia's gain or loss? She has of $

Amanda purchased a home for $520,000 in 2016. She paid $104,000 cash and borrowed the remaining $416,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $780,000 and the remaining mortgage was $312,000, interest rates declined and Amanda refinanced her home. She borrowed $520,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)

James and his wife, Carla sell their personal residence which they have occupied for three years on November 11th 2020 for a total sum of $800,000.  They made renovations in preparation for the sale in the amount of $25,000 and the costs of selling the house were $10,000. Their cost basis in the home was $250,000.  On November 30, they occupied a new home that they purchased for $350,000.                Calculate: (a) their realized gain on the sale of the residence (b) their recognized gain on the sale  (c) their adjusted basis in the new residence.

Brian purchased a block of land in June 1987 for $110,000. At the time that he acquired the land he did not anticipate selling it in the near future. He purchased and held the land because he considered that the land represented a safe investment for his money and that generally land prices went up with inflation. Brian sold the land for $250,000 in the current income year. Which of the following statements about Brian is most correct?   a. The amount is not ordinary income but may be assessed under the capital gains provisions.   b. The entire $250,000 is ordinary income.   c. Section 15-15 ITAA97 will apply to make the amount of $140,000 assessable income.   d. Section 25A ITAA36 will apply to make the amount of $140,000 assessable income.

I hire Susan to sell my house. I tell her that I'm hoping to get $200,000 for the house. She tells me she needs $2,000 to make repairs on the house before it is listed for sale. I give her the $2,000. She takes my money but never makes the repairs. The house sells for $220,000. If Susan is ordered to pay restitution, she will have to pay $ 2000

Amanda purchased a home for $860,000 in 2016. She paid $172,000 cash and borrowed the remaining $688,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $1,290,000 and the remaining mortgage was $516,000, interest rates declined and Amanda refinanced her home. She borrowed $860,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.) Multiple Choice ___ $516,000. ___ $645,000. ___ $860,000. ___ $946,000.

Gadubhi

Tina, your client, is the 55-year-old widow of Paul, who was 58 years old when he died earlier this year. Ed, age 35, is their only child. Tina is the primary beneficiary and Ed is the contingent beneficiary of Paul's IRA, which is worth $400,000. Which one of the following planning techniques will accomplish Tina's goal of deferring taxes for as long as possible on Paul's IRA? A) beginning payments to Tina based on her remaining life expectancy B) beginning payments to Ed based on his life expectancy C) initiating a dependent rollover to Ed D) doing a rollover to Tina's IRA

Callie Cooper purchased two pieces of property in 1990: Property Q cost $15,000 and Property R cost $30,000. In 2020, when Callie died, she left the property to her daughter, Christy. At that time, Property Q had appreciated in value to $80,000 while Property R had declined in value, now worth only $10,000.   What is Christy’s basis in each piece of property? What are the tax consequences of the changes in value of the properties from the time of original purchase to the death of Callie?

Mary owns a home with a with a replacement value of $331,195. She purchased home insurance in the amount of $200,000, and therefore does not meet the 80% rule. If Mary's deductible is $3,000 and a BBQ fire caused $75,000 worth of damage, how much will Mary have to pay herself?