Question

In: Accounting

Tabitha sells real estate on March 2 of the current year for $370,000. The buyer, Ramona,...

Tabitha sells real estate on March 2 of the current year for $370,000. The buyer, Ramona, pays the real estate taxes of $18,500 for the calendar year, which is the real estate property tax year.

Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year.

$______ of the real estate taxes is apportioned to and is deductible by the seller, Tabitha, and $ of the taxes is deductible by Ramona. Ramona's basis is in the property is $________ and the amount realized by Tabitha from the sale is $___________.

Solutions

Expert Solution

Real estate taxes are allocated proportionately to the buyer and seller. Seller portion is till March 1, Buyer's is from March 2.

Total number of days allocable to buyer is = 60.

Seller's share of taxes = 18,500 * 60/365 = 3,041.10

Buyer's is = 18,500 - 3,041.10 = 15,458.90

Seller realization on sale = 370,000 + 3,041.10 = 373,041.10

Buyers basis in property = 370,000 + 15,458.90 = 385,458.90

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Tabitha sells real estate on March 2 of the current year for $370,000. The buyer, Ramona,...
Tabitha sells real estate on March 2 of the current year for $370,000. The buyer, Ramona, pays the real estate taxes of $18,500 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. $_______ of the real estate taxes is apportioned to and is deductible by the seller, Tabitha, and $________ of the taxes...
Tabitha sells real estate on March 2 of the current year for $311,200. The buyer, Ramona,...
Tabitha sells real estate on March 2 of the current year for $311,200. The buyer, Ramona, pays the real estate taxes of $15,560 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. $ of the real estate taxes is apportioned to and is deductible by the seller, Tabitha, and $ of the taxes...
Tabitha sells real estate on March 2 of the current year for $320,800. The buyer, Ramona,...
Tabitha sells real estate on March 2 of the current year for $320,800. The buyer, Ramona, pays the real estate taxes of $16,040 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by...
Tabitha sells real estate on March 2 for $260,000. The buyer, Ramona, pays the real estate taxes of $5,200 for the calendar year
Tabitha sells real estate on March 2 for $260,000. The buyer, Ramona, pays the real estate taxes of $5,200 for the calendar year, which is the real estate property tax year. Assume that this is not a leap year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona. b. Calculate Ramona’s basis in the property and the amount realized by Tabitha from the sale.    
abitha sells real estate on March 2 of the current year for $377,200. The buyer, Ramona,...
abitha sells real estate on March 2 of the current year for $377,200. The buyer, Ramona, pays the real estate taxes of $18,860 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by...
Tabitha sells real estate on March 2 of the current year for $350,800. The buyer, Ramona, pays the real estate taxes of $17,540 for the calendar year, which is the real estate property tax year.
Tabitha sells real estate on March 2 of the current year for $350,800. The buyer, Ramona, pays the real estate taxes of $17,540 for the calendar year, which is the real estate property tax year.Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year.a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona.Tabitha: $Ramona:...
Tabitha sells real estate on March 2 for $260,000. The buyer, Ramona, pays the real estate taxes of $5,200 for the calendar year, which is the real estate property tax year. Assume that this is not a leap year.
Tabitha sells real estate on March 2 for $260,000. The buyer, Ramona, pays the real estate taxes of $5,200 for the calendar year, which is the real estate property tax year. Assume that this is not a leap year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona. b. Calculate Ramona’s basis in the property and the amount realized by Tabitha from the sale.    
Tom sells real estate on March 2 for $260,000. The buyer, Raul, pays the real estate taxes of $5,200 for the calendar year, which is the real estate property tax year. Assume that this is not a leap year.
Tom sells real estate on March 2 for $260,000. The buyer, Raul, pays the real estate taxes of $5,200 for the calendar year, which is the real estate property tax year. Assume that this is not a leap year.A. Determine the real estate taxes apportioned to and deductible by the seller, Tom, and the amount of taxes deductible by Raul.B. Calculate Raul's basis in the property and the amount realized by Tom from the sale.
Is a contract for the sale of real estate assignable by the buyer if it provides for credit from the seller to the buyer?
Corey sold his property to Greer, who assigned the contract right to Bob. The original contract of sale provided for an extension of credit by Corey to Greer and did not require a total cash payment at the time of closing. Is a contract for the sale of real estate assignable by the buyer if it provides for credit from the seller to the buyer? Explain.
The buyer of a piece of real estate is often given the option of buying down...
The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $988,000. He...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT