Tax Week 2

Problems 4-25 billy club Dent, as the owner of an apartment building, receives and makes the avocation allowances stock in January 2011 rent that was due in declination 2010 $5,000.00 standard in December 2011 rent that wasnt due until January 2012 $4,000.00 warranter Deposit, which is to be refunded when Tenant vacates the apartment $500.00 How much rental income moldiness Billy Dent include in his 2011 income tax refurbishment? $9,000.00 4-32Arnold and Barbara reproof were carve upd in June 2011. Pursuant to the divorce decree, Arnold is induce to put to death as follows: a.Transfer title of their personal sept to Barbara. They purchased the erect in 1998 and their basis today is $400,000. The fair grocery survey of the house is $500,000. The house is subject to a 25-year, $250,000 mortgage. chin wag in that respect is no come to to Barbara or Arnolds rateable income due to the careen of the home. She assumes the home with a basis of $ 400,000. b.Arnold is to occur making payments on the house until it is fully paid off. In 2011, Arnold made payments totaling $18,000.

there will be no impact to Arnold or Barbaras taxable income because the payments wouldnt be considered alimony. If there was a ingredient of the amount that was wager then Arnold could deduct that but it doesnt prefigure any of th $18,000 was interest. c.Arnold is to make $3,000 per month payments to Barbara. Of this amount half is for child support. 2011, The divorce decree further states that alimony is to terminate upon the death of the wife. In he made six payments. The porition of the $3,000 payment paid to Barbara as alimony is considered taxable income to her this wou! ld equal $9,000 for 2011...If you motive to get a full essay, order it on our website: OrderEssay.net

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