On June 15, 2020, Allen sold land held for investment to Stan for $68,000 and an installment note of $310,000 payable in five equal annual installments beginning on June 15, 2021, plus interest at 10%. Allen’s basis in the land is $196,560.

Suppose that at the beginning of 2019 José's basis in his S corporation stock was $17,000 and José has directly loaned the S corporation $5,000. During 2019, the S corporation reported an $75,000 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by José if he owns 40 percent of the S corporation? Explain the rule and show computation.

13. B purchased two parcels of land in 2016 for $50,000 each. Parcel 1 was purchased to hold until its value increased and then offered for sale. Parcel 2 was purchased to build a rental property and collect rents over time. In 2022 parcel 1 was sold for $40,000 and parcel 2 was sold for $100,000 as part of the rental property sale. Determine the amount that B’s net income for tax purposes will increase in 2022.

None

Jessica purchased a home on January 1, 2019, for $580,000 by making a down payment of $230,000 and financing the remaining $350,000 with a loan, secured by the residence, at 6 percent. During 2019 and 2020, Jessica made interest-only payments on this loan of $21,000 (each year). On July 1, 2019, when her home was worth $580,000, Jessica borrowed an additional $145,000 secured by the home at an interest rate of 8 percent. During 2019, she made interest-only payments on the second loan in the amount of $5800. During 2020, she made interest-only payments on the second loan in the amount of $11,600. What is the maximum amount of the $32,600 interest expense Jessica paid during 2020 that she may deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard? (Assume not married filing separately.) (Enter only numbers with no dollar signs or other punctuation.)

Jacob purchased business equipment for $144,900 in 2018 and has taken $86,940 of regular MACRS depreciation. Jacob sells the equipment in 2021 for $65,205. What is the amount and character of Jacob's gain or loss? If an amount is zero, enter "0". Jacob has § 1245 gain of $fill in the blank 1 and § 1231 gain of $fill in the blank 2.

On June 15, 2023, Chang purchases $2,937,000 of equipment (seven-year property) for use in their business. It is their only purchase of business property in 2023. Chang has taxable income from their business of $2.5 million before any cost recovery. Click here to access depreciation Table 8-2. (If required, round your answers to the nearest dollar.) a. Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is their total 2023 cost recovery? $ 419,697 b. Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 × $ c. Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 ×

In July 2020, the year of Ralph's death, Ralph's executor properly elects 6166 and has a taxable estate equal to 12,800,000. At the time of Ralph's death, his only asset is a closely held business interest. If the long-term annual AFR is 3%, how much is the first annual interest payment? (Assume no previous taxable gifts.) Question 7 options: A) So. B) $ 9,760. C) $14,640. D) $18, 600.

A7

In July 2020, the year of Ralph's death, Ralph's executor properly elects 6166 and has a taxable estate equal to $ 12,800,000. At the time of Ralph's death, his only asset is a closely held business interest. If the long-term annual AFR is 3%, how much is the first annual interest payment? (Assume no previous taxable gifts.) Question 7 options: A) $o. B) $ 9,760. C) $14,640. D) $18, 600.