Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Under lease 1, the building rents for $610 per month, payable on the first of the next month, and the tenant must make a $610 security deposit that is refunded at the end of the lease. Under lease 2, the building rents for $6,710 per year, payable at the time the lease is signed, but no security deposit is required. Under lease 3, the building rents for $610 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,220 that is to be applied toward the rent for the last two months of the lease. Note: Leave no answers blank. Enter zero if applicable. Required: a. What amounts are included in Ralph's gross income this year if a tenant signs lease 1 on December 1 and makes timely payments under that lease? b. What amounts are included in Ralph's gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease? c. What amounts are included in Ralph's gross income this year if the tenant signs lease 3 on November 30 and makes timely payments under that lease? Complete this question by entering your answers in the tabs below. Required A Required B Required C What amounts are included in Ralph's gross income this year if a tenant signs lease 1 on December 1 and makes timely payments under that lease? Amount included in Gross Income

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

aRhonda owns an office building that has an adjusted basis of $45,000. The building is subject to a mortgage of $20,000. She transfers the building to Miguel in exchange for $15,000 cash and a warehouse with an FMV of $50,000. Miguel assumes the mortgage on the building. Required: What are LaRhonda’s realized and recognized gain or loss? What is her basis in the newly acquired warehouse?

Miller owns a personal residence with a fair market value of $317,450 and an outstanding first mortgage of $253,960, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $15,873 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?

On July 1 of year 1, Elaine purchased a new home for $430,000. At the time of the purchase, it was estimated that the property tax bill on the home for the year would be $8,600 ($430,000 * 2%). On the settlement statement, Elaine was charged $4,300 for the year in property taxes and the seller was charged $4,300. On December 31, year 1 Elaine discovered that the real property taxes on the home for the year were actually $9,600. Elaine wrote a $9,600 check to the local government to pay the taxes for that calendar year (Elaine was liable for the taxes because she owned the property when they became due). what amount of real property taxes is Elaine allowed to deduct for year 1? (Assume not married filing separately.) Multiple Choice ___ $0 ___ $4,300. ___ $4,800. ___ $5.300.

Jasmine Dayne (29) is filing as a single taxpayer. In 2020, she received income from the following sources: $39,000 in wages. Alimony payments totaling $14,328. Her divorce was finalized in October 2019. Unemployment compensation of $6,200. Jasmine also made a timely $2,000 contribution to a traditional IRA for 2020.She had no other income or adjustments, and she will claim the standard deduction.To assist you in answering questions about Jasmine’s tax return, you may refer to Part I of Schedule 1, Additional Income and Adjustments to Income, which is shown below.Part I Additional Income1 Taxable refunds, credits, or offsets of state and local income taxes. ________2a Alimony received. _________2b Date of original divorce or separation agreement (see instructions). _________3 Business income or (loss). Attach Schedule C. _________4 Other gains or (losses). Attach Form 4797. ________5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E.…

Quin owns a house in Connecticut and an apartment in New Orleans. Quin spends most of her time in Connecticut, so she sometimes rents out the apartment in New Orleans when she is not there. This year, Quin rented out the apartment for thirty days and personally used the apartment for forty days. How will Quin’s rental activity be classified for tax purposes and why?   A.Nontaxable activity because Quin used the apartment personally more than she rented it out. B.Mixed-use activity because Quin both rented out the apartment and used it personally. C.Mixed-use activity because Quin rented out the apartment for more than 14 days and personally used the apartment for the greater of 14 days or 10% of the rental days. D.Rental activity because Quin rented out the apartment for more than 14 days.

Which of the following taxpayers may report the sale of their property as an installment sale? (a) Franklin. He sold a tractor to Roberto for $9,000. Roberto made two payments, one payment of $3,500 on May 15 and one payment of $5,500 on September 15 of the tax year. Franklin paid $7,000 for the tractor when it was new; it had fully depreciated before he sold it. (b) Janet. She sold her entire inventory, valued at $8,000, to Marvin for $12,000. Marvin intends to pay Janet $4,000 per year, plus interest, for the next three years. (c) Juan. He sold a plot of land for $50,000. He purchased the land for $45,000 and paid $10,000 to improve it. His buyer intends to pay for the land over five years. (d) Sara. She sold a rental condominium for $125,000. She purchased it for $90,000 and had claimed $20,000 in depreciation. Her buyer intends to pay her $20,000 per year plus 6% interest for five years.

Bob entered into a land contract to purchase real estate from Sam. The purchase price was to be paid over a 10-year period by monthly amortization. At the end of five years, Bob defaulted, having failed to make his required payments. The contract provided that in the event of default, the seller could declare a forfeiture after a period of 30 days and repossess the property. If the court should consider the land contract an equitable mortgage, what might be the rights of Bob and Sam?

17) Bamdad plans to become a landlord and purchase a property to use as a rental (he is conducting these activities under a registered business). He plans to take advantage of leveraging his real estate investment to increase his expenses and reduce his income tax. According to the Canadian government, by what percentage is Bamdad allowed to depreciate his property per year under the Declining Balance Method? 1. He is not able to depreciate the property.   2. 30%   3. 20%   4. 5%