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Bill, who is single with no dependents, had AGI of $100,000. His AGI included net investment income of $15,000 and gambling income of $1,100. Bill incurred the following itemized deductions for income tax purposes. Medical expenses (before 7.5% of AGI floor) $11,000...

Tom and Frank are brothers. Each owns investment property in the other’s hometown. To make their lives easier, they decide to legally exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (adjusted basis of $52,000; fair...

Determine the realized, recognized, and postponed gain or loss and the new basis for each of the following like kind exchanges:   Adjusted Basisof Old Machine Boot Given Fair Market Valueof New Asset BootReceived a. $ 7,000 $ –0– $12,000 $4,000 b. 14,000 2,000...

Jason, a calendar year taxpayer, is the sole proprietor of a hardware store. His adjusted basis for the building and the related land is $150,000. On March 4, 2012, state authorities notify Jason that his property is going to be condemned so that the highway can be...

Wanda, a calendar year taxpayer, owned a building (adjusted basis of $250,000) in which she operated a bakery that was destroyed by fire in December 2012. She receives insurance proceeds of $290,000 for the building the following March. Wanda is considering two...

Webb, who is single, listed his personal residence with a real estate agent on March 3, 2012, at a price of $350,000. He rejected several offers in the $300,000 range during the summer. Finally, on August 16, 2012, he and the purchaser signed a contract to sell for...

Ben owns a beach house (five years) and a cabin in the mountains (four years). His adjusted basis is $280,000 in the beach house and $315,000 in the mountain cabin. Ben also rents a townhouse in the city where he is employed. During the year, he occupies each of the...

Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ownership, she occupied it as her principal residence. During the past two years, she was in graduate school and rented the residence. After...

Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Alton and Clair are both retired, and during 2011, they received Social Security benefits of $10,000. Alton’s Social Security number is 111–11–1111, and Clair’s is 123–45–6789....