Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

sopve both parts please and thank you. Paragraph Styles Edit Problem C (4 points) a. In your own words, explain why Congress requires depreciation to

image text in transcribed
sopve both parts please and thank you.
Paragraph Styles Edit Problem C (4 points) a. In your own words, explain why Congress requires depreciation to be recaptured on the sale of depreciable personalty under & 1245. What does it mean "recapture?" b. There is generally no "recapture" under $ 1250. Explain. Then, what is "unrecaptured 1250 depreciation? Problem D (10 points) Marci Birx, age-59, is single, and has taxable income, properly calculated, of $76,314. During the year, Andi completed transactions, including: Qualified dividends 1,155 Loss on sale of Tandem Diabetic stock (held from 11/10/2017 to 10/31/2019, Cost = $7,400) -3,100 SALE OF RENTAL RESIDENCE Sales price (June 22, 2019) Land 72,000 Building $48,000 Cost (October 18, 2010) Land 38,000 Building 30,000 Depreciation allowed 8,898 SALE OF APPLIANCES WITH RESIDENCE Sales price $2,500 Cost (October 18, 2014) 9,000 Depreciation allowed 9,000 Calculate Marci's federal income tax for 2019. Show your work! You might consult Form 4797, as you will be asked to complete it as part of Tax Return 2. D Focus EU Paragraph Styles Edit Problem C (4 points) a. In your own words, explain why Congress requires depreciation to be recaptured on the sale of depreciable personalty under & 1245. What does it mean "recapture?" b. There is generally no "recapture" under $ 1250. Explain. Then, what is "unrecaptured 1250 depreciation? Problem D (10 points) Marci Birx, age-59, is single, and has taxable income, properly calculated, of $76,314. During the year, Andi completed transactions, including: Qualified dividends 1,155 Loss on sale of Tandem Diabetic stock (held from 11/10/2017 to 10/31/2019, Cost = $7,400) -3,100 SALE OF RENTAL RESIDENCE Sales price (June 22, 2019) Land 72,000 Building $48,000 Cost (October 18, 2010) Land 38,000 Building 30,000 Depreciation allowed 8,898 SALE OF APPLIANCES WITH RESIDENCE Sales price $2,500 Cost (October 18, 2014) 9,000 Depreciation allowed 9,000 Calculate Marci's federal income tax for 2019. Show your work! You might consult Form 4797, as you will be asked to complete it as part of Tax Return 2. D Focus EU

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Q And A 2016

Authors: ACA Simplified

1st Edition

1523200464, 978-1523200467

More Books

Students also viewed these Accounting questions