Pat sells real estate for $30,000 cash and a $90,000 5year note. If her basis in the
Question:
Pat sells real estate for $30,000 cash and a $90,000 5year note. If her basis in the property is $90,000 and she receives only the $30,000 down payment in the year of sale, how much is Pat’s taxable gain in the year of sale using the installment sales method?
a. $0
b. $7,500
c. $22,500
d. $30,000
e. $120,000
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Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
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