Question
Instructions are to find tax related issues in the following paragraphs. Any will work and not a lot of detail is needed. I will upvote!
Instructions are to find tax related issues in the following paragraphs. Any will work and not a lot of detail is needed. I will upvote! Thanks!
Han and Leia Solo are married filing a joint federal tax return for the tax year 2023. Their Adjusted Gross Income is in-excess of $450,000. They have one dependent age 21 who is a fulltime student. The Solos anticipate a total of $6,300 in state income taxes in 2023 with no refund.
Han and Leia purchased a townhouse in Coruscant in 2016 for $750,000 which is now valued at $1,750,000. They have lived in the townhouse continuously since they purchased it in 2016. After much discussion, the Solos decided that they wanted to leave the hustle and bustle of the city behind and move to a quieter location. The real estate taxes on the Coruscant property are $5,250 per year.
With the help of Boba Fett Realty (BFR) they found a gorgeous 30-acre lakefront property on Lake Tatooine with incredible views and vistas of the Dune Sea and the Greedo Mountains. The lakefront property was purchased by its owners for $1,475,000 in 2018.
The owners of the Lake Tatooine property wanted to move to the city since their commute to Coruscant was too long and they missed some of the amenities of the city. So, the Solos and the owners of the Lake Tatooine property exchanged properties on June 30, 2023. No cash changed hands in the transaction.
5. In 2023 the Village of Mos Eisley valued the property at $3,150,000 and assessed real property taxes on the both the home and the out-parcels of property. Jobba the Assessor determined that the home represented 30% of the value and the out-parcels represented the remaining 70% of the value for the property. The real estate taxes on the Lake Tatooine property are $31,500 per year.
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