A married couple purchased their principal residence for $600,000 They spent $80,000 on improvements After living in it for 6 years, the couple sold the home for $1,400,000 and paid $70,000 in real estate commissions What gain should the couple recognize on their joint return $0 $150,000 $650,000 $800,000 In the current year, a taxpayer exchanged farmland for an office building The farmland had a basis of $750,000, a fair market value (FMV) of $1,200,000 and was encumbered by a $360,000 mortgage The office building had an FMV of $1,050,000 and was encumbered by a $210,000 mortgage Each party assumed the other's mortgage What is the amount of the taxpayer's recognized gain $0 $150,000 $300,000 $450,000 Unicorps building was destroyed by a tornado The fair market value of the building at the time of the tornado was $800,000 and its adjusted basis was $700,000 The insurance proceeds totaled $1,000,000 $800,000 for the building and $200,000 for lost profits during rebuilding Unicorp does not defer any gain under the involuntary conversion provisions of Code Sec 1033 What amount of the insurance proceeds is taxable to Unicorp $0 $100,000 $200,000 $300,000 In the current year, Miller sold land with a basis of $320,000 to Yara for $400,000 Yara paid $100,000 down and agreed to pay $60,000 per year, plus interest, for the next five years, beginning in the second year Under the installment method, what gain should Miller include in gross income for the year of sale $20,000 $60,000 $80,000 $100,000 In the current year, a taxpayer exchanged an office building for a commercial warehouse The office building had a basis of $100,000, an FMV of $120,000, and was encumbered by a $90,000 mortgage The taxpayer received a warehouse with an FMV of $150,000, which was encumbered by a $105,000 mortgage Each party assumed the other's mortgage What is the amount of the taxpayer's recognized gain $0 $16,000 $30,000 $35,000 Funland Corp sold a building for $600,000 Funland received a down payment of $120,000 as well as annual principal payments of $120,000 for each of the subsequent 4 years Funland purchased the building for $500,000 and claimed depreciation of $80,000 What amount of gain should Funland report in the year of sale using the installment method $36,000 $54,000 $120,000 $180,000 Fresh Fruit Incs warehouse (with an adjusted tax basis of $375,000) was destroyed by fire The following year, Fresh Fruit received insurance proceeds of $975,000 and acquired a new warehouse for $835,000 Fresh Fruit elected to recognize the minimum gain possible What is Fresh Fruits basis in the new warehouse $235,000 $375,000 $695,000 $835,000 Mikhail owns real estate held for investment with a basis of $400,000 and a fair market value of $650,000 He exchanges it for other real estate with a fair market value of $480,000 In addition, Mikhail is relieved of a mortgage on the old property of $200,000, assumes a mortgage on the new property of $100,000, and receives $70,000 in cash What is Mikhail's recognized gain on the exchange $0 $70,000 $170,000 $250,000 Decker, a 62 year old single individual, sold his principal residence for the net amount of $500,000 after all selling expenses Decker bought the house 15 years ago and occupied it until it was sold On the date of sale, the house had a cost basis of $200,000 Within six months, Decker purchased a new house for $600,000 What amount of gain should Decker recognize from the sale of the residence $0 $50,000 $175,000 $300,000 An LLC exchanged an office building with a fair market value of $550,000 and an adjusted basis of $220,000 for a shopping center with a fair market value of $600,000 If the LLC paid an additional $50,000 to complete the exchange, what amount of gain, if any, would the LLC realize $0 $50,000 $330,000 $380,000

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Posted on Sep 01, 2024