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Sally owns real property for which the annual property taxes are $16, 880. She sells the property to Shelley on April 1 for $844,000. Shelley

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Sally owns real property for which the annual property taxes are $16, 880. She sells the property to Shelley on April 1 for $844,000. Shelley pays the real property taxes for the entire year on October 1. Determine any allocation based on months (not days). If required, round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Shelley? Sally can deduct $ and Shelley can deduct $ of the property taxes. b. What effect does the property tax apportionment have on Shelley's adjusted basis in the property? Shelley's adjusted basis for the property is increased by the $ she paid that is apportioned to Sally 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 $ Her amount realized is increased by this amount. d. How would the answers in (b) and (c) differ if the taxes were paid by Sally? If the taxes were paid by Sally, Sally's amount realized would be $ Shelley's adjusted basis would be $

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