Exercise $13-26($Algorithmic$)($L$0.1)$

Sally owns real property for which the annual property taxes are $$17,130.$ She sells the property to Kate on April $2,2023,$ for $$856,500.$

Kate pays the real property taxes for the entire year on October $1,2023.$

Assume a $365-$day year. Round any division to four decimal places. Round your final answers to the nearest dollar.

a$.$ How much of the property taxes can be deducted by Sally and how much by Kate?

Sally can deduct $

$$ and Kate can deduct $

$$ of the property taxes.

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b$.$ What effect does the property tax apportionment have on Kate's adjusted basis in the property?

Kate's adjusted basis for the property is

$$ by the $

$$ she paid that is apportioned to Sally.

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c$.$ What effect does the apportionment have on Sally's amount realized from the sale?

Sally paid none of the real property taxes and

$$ permitted to deduct the apportioned share of $

$.$ Her amount

realized is increased $$ by this amount.Sally owns real property for which the annual property taxes are $$17,130.$ She sells the property to Kate on April $2,2023,$ for $$856,500.$ Kate pays the real property taxes for the entire year on October $1,2023.$d$.$ How would the answers in parts $($b$)$ and $($c$)$ differ if Sally paid the taxes?

If Sally paid the taxes, Sally's amount realized would be $

X $.$ Kate's adjusted basis would be $

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Assume a $365-$day year. Round any division to four decimal places. Round your final answers to the nearest dollar.

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a$.$ How much of the property taxes can be deducted by Sally and how much by Kate?

Sally can deduct $fill in the blank $4$b$3$a$7$e$029047$fc$6\_1$

$4,271$

and Kate can deduct $fill in the blank $4$b$3$a$7$e$029047$fc$6\_2$

$12,859$

of the property taxes.

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The term sale or other disposition is defined broadly in the tax law and includes virtually any disposition of property. Realized gain or loss is the difference between the amount realized from the sale or other disposition of property and the property's adjusted basis on the date of disposition. The amount realized from a sale or other disposition of property is a measure of the economic value received for the property given up$.$

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b$.$ What effect does the property tax apportionment have on Kate's adjusted basis in the property?

Kate's adjusted basis for the property is

increased

by the $fill in the blank cddb$3302304007$c$\_2$

$4,271$

she paid that is apportioned to Sally.

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c$.$ What effect does the apportionment have on Sally's amount realized from the sale?

Sally paid none of the real property taxes and

is

permitted to deduct the apportioned share of $fill in the blank ede$77$e$03$d$05801$a$\_2$

$4,271$

$.$ Her amount realized is

increased

by this amount.

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d$.$ How would the answers in parts $($b$)$ and $($c$)$ differ if Sally paid the taxes?

If Sally paid the taxes, Sally's amount realized would be $fill in the blank dbbc$50$fd$5072025\_1$

$873,630$

$.$ Kate's adjusted basis would be $fill in the blank dbbc$50$fd$5072025\_2$

$856,500$

$.$