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 agoRelated Solutions
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for the calendar year, which is the real estate property tax
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Round any division to four decimal places and use in subsequent
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Assume a 365-day year.
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