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pls help with accounting Sally owns real property for which the annual property taxes are $13,680. She sells the property to Kate on April 2,
pls help with accounting
Sally owns real property for which the annual property taxes are $13,680. She sells the property to Kate on April 2, 2022, for $684,000. Kate pays the real property taxes for the entire year on october 1,2022. Assume a 365 -day vear. Round any division to four decinal 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 3 X and Kate can deduct $ X of the property taxes. Fiectowh Toweok Mr Wok 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 recelved for the property olven up. b. What effect does the property tax apportionment have on Kate's adjusted basis in the property? Kate's adfusted basis for the property is by the t X she paid that is apportioned to Sally. Fevabion cheok Mr Wor Partaly corred c. What effect does the apportionment have on Sally's amount realized from the sale? Sally paid noce of the real property taxes and permitted to deduct the apportioned share of 1 X. Her amount realized is by this amount. 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 $ X. Her amount realized is by this amount. T Check My Work Partially corroct 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 adfusted basis would be $ Step by Step Solution
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