The following information is available for the Albert and Allison Gaytor family in addition to that provided
Question:
The following information is available for the Albert and Allison Gaytor family in addition to that provided in Chapters 1–6.
On September 14, Allison purchased the building where her store is located. She paid $230,000 for the building and $100,000 for the land it is located on. Allison’s store is the only business in the building.
Albert owned 1,000 shares of Behemoth Airline stock with a basis of $30 per share. The stock was purchased 6 years ago on June 10. Albert sells 500 shares of Behemoth stock to his uncle Seth and 500 of the shares to his sister Sara for $5 per share on December 31, 2016.
Assume for purposes of the continuation of this problem and the problem in Chapter 8 that the Gaytors do not have $80,000 in private activity bond interest income. As a result, no AMT will be due.
Required: Combine this new information about the Gaytor family with the information from Chapters 1–6 and complete a revised 2016 tax return for Albert and Allison. Be sure to save your data input files since this case will be expanded with more tax information in the next chapter.
Step by Step Answer:
Income Tax Fundamentals 2017
ISBN: 9781305872738
35th Edition
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller