Question
Sally owns real property for which the annual property taxes are$17,580. She sells the property to Kate on April 2, 2021, for$879,000. Kate pays the
Sally owns real property for which the annual property taxes are$17,580. She sells the property to Kate on April 2, 2021, for$879,000. Kate pays the real property taxes for the entire year onOctober 1, 2021. Assume a 365-day year. Round any division to fourdecimal places. Round your final answers to the nearest dollar.
a. How much of the property taxes can be deducted by Sally andhow much by Kate? S
What effect does the apportionment have on Sally\'s amountrealized from the sale?
How would the answers in parts (b) and (c) differ if Sally paidthe taxes?
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South Western Federal Taxation 2015
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
38th Edition
978-1305310810, 1305310810, 978-1285439631
