Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $325,000. He sold the home on January 1, 2019, for $346,200. How much gain must Troy recognize on his home sale in each of the following alternative situations? a. Troy rented out the home from January 1, 2007, through November 30, 2008. He lived in the home as his principal residence from December 1, 2008, through the date of sale. Assume accumulated depreciation on the home at the time o sale was $10,800. ANS: 10,800 b. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2014. He rented out the home from January 1, 2015, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $5,800. ANS: 27,000 c. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2016. He rented out the home from January 1, 2017, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0. ANS: 0 Troy rented out the home from January 1, 2007, through December 31, 2014. He lived in the home as his principal residence from January 1, 2015, through December 31, 2015. He rented out the home from January 1, 2016, through December 31, 2016, and lived in the home as his principal residence from January 1, 2017, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.

Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss? Larry sold an apartment building for $300,000 on September 1. The rental property was purchased on September 1, 2017, for $150,000 and was being depreciated over a 27.5-year life using the straight-line method. At the date of sale, the adjusted basis was $124,783. There is an overall § 1231 gain of $__________ How much § 1250 recapture is recognized? $__________ What is the amount of unrecaptured § 1250? $__________ Larry's personal yacht was stolen on September 5. The yacht had been purchased in August at a cost of $25,000. The fair market value immediately preceding the theft was $19,600. Larry was insured for 50% of the original cost, and he received $12,500 on December 1. There is a tax loss (before AGI limitations) of $__________ that is treated as nondeductable personal casualty loss. Larry sold a…

Thomas and Courtney are married, and they will file a joint return. In 2023, they sold an undeveloped plot of land. They had purchased the land in 2018 as an investment. Unfortunately, the value of the land decreased, and they incurred a $5,000 loss at the time of sale. They had no other capital gains or losses during the year, and they had no prior-year carryover losses. How much of the loss from the sale of the land may the couple use to offset their 2023 ordinary income?  $0  $1,500  $3,000  $5,000

Erin is the landlord of a single-family home, which she leased to Carlos in February 2022. Prior to moving in, Carlos paid $1,000 for the first month's rent and an additional $1,000 for the last month's rent (for a total of $2,000 advance rent). He then paid $10,000 in rent during the remainder of the tax year. What amount does Erin include in gross rental income for this property in 2022?