{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Settlement the 14 apportionment of real estate

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 14 Apportionment of Real Estate Apportionment Taxes Between Buyer & Seller Taxes EXAMPLE On 11/1/08 taxpayer Z prepaid $2,000 real estate taxes for the city fiscal year ending October 31. On 1/16/09, Z sold his property to A (exclude date of sale). Z owned the property 76 days (30+31+15), and A owned it 289 days (365-76). 76 Z may deduct × $2,000 = $416.44 365 289 A may deduct × $2,000 = $1,583.56 365 15 The Tax Benefit Rule Refunds or reimbursements of items deducted in an Refunds earlier year are subject to the “tax benefit rule” earlier The “Tax Benefit Rule” Include the refund in income to the extent of the lesser of the y Prior year’s deduction or y Amount by which the prior year’s itemized deduction exceeded the standard deduction or y Amount of the refund 16 The Tax Benefit Rule Example In 2008, John paid the following state taxes: $300 in In estimated taxes for 2008, $450 in taxes due on his 2007 return (paid 4/15/08), and had $1,500 taxes withheld. Assume John had itemized deductions $2,500 greater than the standard deduction in...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern