The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine...

The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. How do I complete Form 8949???

Solutions

Expert Solution

The format of Form 8949 is attached herewith. As, the household property was purchased in year 1993 and sold in year 2018. So, it is a long term asset and on this long term capital gains are to be computed.So, for this Part-II of the Form 8949 is to be filled.

According to IRS, it defines home improvement as a capital improvement that adds market value to the home.Assuming these improvements as the capital improvements. So, it must be taken in consideration while calculating the long term capital gain.

Total cost include the purchase cost and improvement cost. So, it will be 76000+13000= $89000

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

According to the University of Nevada Center for Logistics Management, 12% of all merchandise sold in...

According to the University of Nevada Center for Logistics Management, 12% of all merchandise sold in the United States gets returned. A Houston department store sampled 110 items sold in January and found that 15 of the items were returned. A. Construct a point estimate of the proportion of items returned for the population of sales transactions at the Houston store. .1364 (to 4 decimals) B. Construct a confidence interval for the proportion of returns at the Houston store. ?...

According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in...

According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned. A Houston department store sampled 80 items sold in January and found that 10 of the items were returned. a. Construct a point estimate of the proportion of items returned for the population of sales transactions at the Houston store. 10/80 = .125 b. Construct a 90% confidence interval for the proportion of returns at the Houston store. ????,????...

According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in...

According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned (BusinessWeek, January 15, 2007). A Houston department store sampled 80 items sold in January and found that 15 of the items were returned. a) Construct a 90% confidence interval for the proportion of returns at the Houston store. b) Is the proportion of returns at the Houston store significantly larger than the returns for the nation as a whole?...

In 2019, Mr. and Mrs. Underhill sold their home and moved into a senior citizen village....

In 2019, Mr. and Mrs. Underhill sold their home and moved into a senior citizen village. This home had been their principal residence for the past 30 years, and they originally purchased it for $170,000. Mr. and Mrs. Underhill file a joint return. Compute their REALIZED and RECOGNIZED gain or loss on the sale assuming that they sold the house for: 1. $850,000 2. $160,000 3. $330,000 Make sure you calculate both the realized and recognized gain. Additionally, if you...

James moved to a new house so he rented his old home to Mr. Parker for...

James moved to a new house so he rented his old home to Mr. Parker for two years. Later the old house caught fire and had a $100,000 loss. The old house was valued at $400,000 and James had a $300,000 homeowner's insurance policy with an 80% coinsurance. How much will insurance company pay for his loss?

1. We never had any trouble with the TV until John moved back into our house....

1. We never had any trouble with the TV until John moved back into our house. I guess he was the problem. a) small sample b) hasty conclusion c) division d) no fallacy 2. Obama: "And if we have Osama bin Laden in our sights and the Pakistani government is unable or unwilling to take him out, then I think that we have to act and we will take him out." McCain: "Sen. Obama likes to talk loudly. In fact,...

The Underground Railroad angered southerners because it rescued more blacks from slavery than succeeded in purchasing...

The Underground Railroad angered southerners because it rescued more blacks from slavery than succeeded in purchasing their freedom or were freed voluntarily by their masters.

MAINE CORPORATION ….. purchases logs from independent timber contractors and processes them into the following three...

MAINE CORPORATION ….. purchases logs from independent timber contractors and processes them into the following three types of lumber products: - Studs for residential construction (e.g., walls and ceilings) - Decorative pieces (e.g., fireplace mantels and beams for cathedral ceilings) - Posts used as support braces (e.g., mine support braces and braces for exterior fences around ranch properties) In addition to the main products, the process produces a certain amount of sawdust which, while salable for commercial use, carries a...

MAINE CORPORATION ….. purchases logs from independent timber contractors and processes them into the following three...

Although bullying is not a new problem, it has moved from the schoolyard and classrooms to...

Although bullying is not a new problem, it has moved from the schoolyard and classrooms to the internet. Media such as Facebook, emails and mobile texting all provide the opportunity to "bully" others and do it on a more widespread scale than before. This can prove to be more traumatizing to the individual being bullied than traditional forms of bullying. Here's recent link to review as part of this discussion: Bullied Teen http://www.msn.com/en-us/news/us/a-horribly-bullied-teen-committed-suicide-now-his-former-dairy-queen-boss-has-been-charged-with-involuntary-manslaughter/ar-AAmx8hs For this discussion, consider the following questions/subtopics:...

Subjects