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: $

b. Calculate Ramona's basis in the property and the amount realized by Tabitha from the sale.
Tabitha: $
Ramona: $

Expert Solution

Given Tabitha sells real estate on march 2 for $350,800. The estate taxes paid by Ramona is $17,540

Real Estate Taxes

Tabitha is liable to pay the taxes till March 2,(31+28+2 = 61 days) so the amout of taxes for tabitha is as folows if they are apportioned between them

Tabitha'share = $17,540 *(61/365) = $2,931

Ramona's share = $17,540 - $2,931 = $14,609

Ramona's basis in the property:

If the taxes are apportioned , the basis in the property for Ramona is $350,800. if it is not , then the taxes are added to the basis $368,340 ($350,800 + $17,540)

Amount Realized by Tabitha

If the taxes are apportioned, the amount realized by tabitha is $347,869 ($350,800 - $2,931)

If it is not, the amount realized is $350,800

ekkarill92 answered 2 years ago

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.

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.

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 $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...

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.

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...

Suppose a property has estimated real estate taxes for the current year of $4,398.25 dollars and that taxes are paid at the end of the year.

Suppose a property has estimated real estate taxes for the current year of $4,398.25 dollars and that taxes are paid at the end of the year. If the property is being sold on May 25 in a year with 365 days and the buyer and seller agree to prorate the taxes at the time of closing with the buyer being responsible for theday of closing, what amount will be charged to the seller on the settlement statement?$1,000.00$1,735.20$2,663.05 None of the above

In February of the current year (assume a non-leap year), Miguel and Perla received their property tax statement for last calendar-year taxes of $3,000, which they paid to the taxing authority on March 1 of the current year.

In February of the current year (assume a non-leap year), Miguel and Perla received their property tax statement for last calendar-year taxes of $3,000, which they paid to the taxing authority on March 1 of the current year. They had purchased their home on April 1 last year. What amount of property tax on this statement may they claim as an itemized deduction this year (rounded) (Tax Year 2018)?A) $0B) $800C) $1,074D) $2,260

Question

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.

Solutions

Expert Solution

Related Solutions

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.

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,...

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 $320,800. The buyer, Ramona,...

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.

abitha sells real estate on March 2 of the current year for $377,200. The buyer, Ramona,...

Suppose a property has estimated real estate taxes for the current year of $4,398.25 dollars and that taxes are paid at the end of the year.

In February of the current year (assume a non-leap year), Miguel and Perla received their property tax statement for last calendar-year taxes of $3,000, which they paid to the taxing authority on March 1 of the current year.