b. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case? Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like kind exchange treatment. (2) You cannot do a 1031 like-kind exchange on your personal residence. A 1031 exchange allows the deferral of capital gains taxes and recapture of depreciation.
61. (LO4) Assuming Alexa receives $20,000 in gross rental receipts, answer the following questions: Gross rental receipts $20,000 Less Tier 1 (2,000) (property taxes) Income after Tier 1 18,000 Less Tier 2 (5,900) (insurance, rep & main, utilities) Income after Tier 2 12,100 Less Tier 3 (14,500) Taxable rental income (loss) (2,400) a. What effect does the rental activity have on her AGI for the year? According to the text, a rental activity (including a second home rental) is considered to be a passive activity. Because they are passive losses, losses from rental property are generally not allowed to offset other ordinary or investment type income.
In this assignment, I am going to describe how budgets can be used to set targets, monitor and control an organisation. Definition of Budget with examples: A budget is an estimate of income and expenditure for a set period of time. For example, a business has an income of £25,000 but as part of their expenditures, they would have to spend only £18,000 to control their budget spending. Another example could be that a business have to spend £10,000 as part of their £15,000 budget to save on costs. Definition of Target with examples: a target is an aim or an objective that is set out for anyone to complete within a time set.
Move-in condition, which falls into line with Curb Appeal, is a home that a buyer can just turn-key and move in. Turn-Key is where the buyer can move in without cleaning, painting or completing minor repairs. The financial background of a potential buyer details their credit worthiness and availability to obtain a mortgage. Recent comparables describes recent property sales that have closed and are comparable with current market values. In regards to the financial aspect of a real estate transaction, it is important for a seller or buyer to keep the term in mind, leaving money on the table, which is viewed as the seller taking less than the actual property value or the buyer paying too
They would make semiannual payments of $12.303 million and can sell the equipment at the end of its 25-year useful life at $40.185 million. If Acela’s revenue expectations are not met and Amtrak remains unprofitable, the present value of the cost of this option would be 260.26 million. Assuming profitable, the present value of the costs would become approximately $164.77 million due to the benefit of the tax shield. Also, Amtrak is considering an 80% debt to 20% equity leveraged-lease structure to finance the locomotives and train sets. They would make semiannual payments and has the option to buy the equipment from the equity investor, BNY Capital
2) Suppose the selling price of outsiders drops another $15 to $185. Should P purchase from outsiders? 3) Suppose (disregarding Requirement 2) that S could modify the component at an additional variable cost of $10 per unit and sell the 2,000 units to other customers for $225. Would the entire company then benefit if P purchased the 2,000 components from outsiders at $200 per unit? 4) Suppose the internal facilities could be assigned to other production operations that would otherwise require additional annual outlays of $29,000.
The benefits of automatic deductions is the employee does not need to worry about how much to deduct from each paycheck and not have to figure out how much money was pre-tax money when they file their taxes (Guy). The 401(k) plan has many benefits the employee can use and take advantage of. The 401(k) plan allows an employee to rollover, transfer the funds if the employee leaves the company for another position and can either move the old 401(k) funds into the new 401(k) plan or roll it over to an individual retirement account (401(k) Plans). If something
Another instance is recording rent when it is paid not delineating what is promised (unearned rent revenue) and when it is paid (rent revenue). Basically cash basis account doesn’t account for what is owed but what is owned. However, Cash basis accounting excels at tracking actual assets, cash on hand in particular. Cash is operating revenue; businesses cannot pay employees without some type of cash. Accrual basis accounting records the transaction immediately in a type of account, such as accounts payable, money owed to other companies for services; or accounts receivable “money owed by its debtors” ("Google.com", 2012).
No matter what way you decide to go into the process, it is going to cost thousands. An adoption that occurs through a state organization may cost up to $2,500, but the adoptive parents may be able to incur no cost from state grants and subsidies offered. An adoption through a private agency ranges $4,000 to $30,000 respectively, while an international adoption costs $7,000 to $25,000, as of 2010
If you were trying to determine if the return on the investment of $30,000 was worth the monetary loss alone, the answer is no. However, the information validates the statistical model based solely on the owner's franchise's data. This purchased data and