Homework_Set_5 - Homework Set#5 JUDD Tax 4001 2011/2012 1...

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Homework Set #5 JUDD Tax 4001 2011/2012 1. Brittany owns a personal-use boat that has a FMV of $37,500 and an adjusted basis of $45,000. Brittany’s AGI is $82,000. Calculate the realized and recognized loss if: a. Brittany sells the boat for $37,500 b. Brittany exchanged the boat for another boat worth $37,500 c. The boat is stolen and she receives $37,500 in insurance proceeds. 2. Greg has decided to dispose of the following assets he received as gifts. Compute his realized and recognized gain(loss) on these disposals.: a. In 2000 he received land worth$76,000. The donor’s adjusted basis was $89,000. He sells the land for $65,000 this year. b. In 2006, he received stock worth $60,000. The donor’s adjusted basis was $80,000. He sells the stock this year for $68,000. 3. Julie’s personal residence originally cost $225,000 ($25,000 of that cost was allocated to the land). After living in the house for five years, she converts it to rental property. At the date of conversion, the FMV of the house and land was $275,000. As to the rental property, calculate her basis for: a. Loss b. Depreciation c. Gain d.
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