Calculation of Gain or Loss (L0 4.3) Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made $60,000 of capital Improvements on the complex, and depreciation claimed on the building to date is $137,500 Calculate Jocasta's adjusted basis in the building. Problem 4-10 Rental Income and Expenses (L0 4.7) Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000 Total real estate taxes for the home are $950, and interest on the home mortgage is $3,000. Annual utilities and maintenance expenses total $1,800, and depreciation expense is $4,500 Calculate Sherry's net Income (or loss) from the vacation home for this tax year: Base allocation on number months, rather than days. Rental income Expenses Real estate taxes Mortgage interest Utilities and maintenance Depreciation Net rental income (los) Rental income and Expenses (LO 4,7) Dick owns a house that he rents to college students. Dick receives $800 per month rent and Incurs the following expenses during the year: Real estate taxes $1,250 1,500 Mortgage Interest 425 Insurance Repairs 562 Association dues 1,500 Dick purchased the house in 1978 for $48,000. The house is fully depreciated. Calculate Dick's net rental income for the year, assuming the house was rented for a 12 months Ef an amount is zero, enter, "0". Rental income Expenses Real estate taxes Mortgage Interest Insurance Repairs Association Dues Depreciation E Net rental Income (loss) During 2018, Tom Sold Sears stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000. The bonds were purchased 2 months ago for $30,000. Home Depot stock, purchased 2 years ago for $1,000, was sold by Tom for $2,500 Calculate Tom's net gain or loss, and indicate the nature of the gain or loss. Net short-term capital gain Problem 4-7 Sale of a Personal Residence (LO 4.6) Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2018, for $148,000. He lived in the house for 7 years. The expenses of the sale are $9,000, and he has made capital improvements of $7,000. Larry's cost basis in his residence is $85,000. On November 30, 2018, Larry purchases and occuples a new residence at a cost of $148,000. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence If an amount is zero, enter "o". a. Realized gain b. Recognized gain C. Adjusted basis of new residence Calculation of Gain or Loss (LO 4.3) Chrissy receives 200 shares of Chevron stock as a gift from her father. The stock cost her father $9,000 10 years ago and is worth $10.500 at the date of the gift. a. If Chrissy sells the stock for $12,500, calculate the amount of the gain or loss on the sale. Gain E b. If Chrissy sells the stock for $4,600, calculate the amount of the gain or loss on the sale Loss
