Assignment ch 4 and 6 - Assignment week 2 4-25 Rental...

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Assignment week 2 4-25 Rental income must Billy Dent include on his 2009 income tax return was $ 9,000. The amount of $4,000 is included because rent received in advance, is always taxable when received. 4-32 a-) Barbara assume the house with a tax basis of $400,000.Regarding to the code, the basis the property will carry is the same in the hands of the receiving spouse as it was in the hands of the transmitting spouse. Property transfers as part of a divorce are not taxable income . b-) Arnold can deduct the interest portion of the payments. c-) Child support is not taxable to the person who receives it and not tax deductible to the person who pays it. That means that when you and your spouse have dramatically different incomes, there may be some tax advantages to using alimony, even if a judge wouldn't ordinarily award it. In this case there are 6 payments for child support of $9,000. Alimony is tax deductible to the person who pays it, and included in the taxable income of the
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This note was uploaded on 02/21/2012 for the course ACCOUNTING 451 taught by Professor Douglasletsch during the Spring '11 term at DeVry Phoenix.

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Assignment ch 4 and 6 - Assignment week 2 4-25 Rental...

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