The writer is very fast, professional and responded to the review request fast also. Thank you.
Book/movie review
22/08/2022
Emelio and Charita are married taxpayers with 2 dependent children. Emelio starts
a computer consulting business in 2013. Charita works as a real estate broker. During
2013, they have the following property transactions:
a. Emelio purchases an office building on March 15, 2013, to use in his computer
consulting business. The price of the property is $120,000. He pays
$15,000 in cash and signs a 30-year, 10% mortgage for the remainder. For
property tax purposes, the land is assessed at $10,000 and the building at
$30,000. Emelio pays $3,000 for a new roof for the building.
b. Emelio was employed by Computer Corporation as a consultant before starting
his own business. Computer Corporation lets Emelio purchase the computer
equipment in his office for use in his business. He makes the purchase
on April 3, 2013. The fair market value of the equipment is $20,000, but
Emelio pays $16,000 to Computer Corporation. Computer Corporation’s
original basis in the equipment was $36,000, and its adjusted basis at the time
of the transfer to Emelio is $8,000.
c. Emelio takes the color printer that the children have been using at home to
use in the office in his consulting business. The original price of the printer
was $8,000, but it is worth $4,000 when converted to business use on April 1,
2013.
On March 30, 2013, Emelio buys office furniture to use in his business for
$2,200.
e. In January, Charita purchases a new car to use in her real estate business.
She pays $19,500 for the car and $1,500 to have a sunroof installed in it.
During the year, she drives the car 6,800 miles for business and 3,200 for
personal use.
f. Charita uses a room in their home exclusively and regularly as an office. The
room is 12 feet by 12 feet. The total area in the home is 2,400 square feet.
Charita purchased office furniture for $800 when she started using the office
in the home in June 2008. She and Emelio paid $140,000 for the property in
2003, of which $20,000 is allocated to the land.
g. Emelio and Charita own a rental house. Charita acquired the house from her
former husband in 2004 as part of their divorce settlement. Charita and her
former husband paid $50,000 for the house (which is her basis in the property)
in 1997. Charita estimates that the property increased in value to
$80,000 ($70,000 for the house, $10,000 for the land) when it was converted
to rental property in October 2005.
h. Charita inherits 200 shares of stock in Desmond, Inc., from her uncle, who
paid $700 for it in 1981. At the date of the uncle’s death, the stock is worth
$14,000. The executor of the estate elects to use the alternate valuation date,
at which time the stock is worth $13,300. Charita receives the stock 2 months
later when it is worth $14,500.
i. Emelio and Charita own stock in Software Corporation. They purchased
1,000 shares for $20 per share in July 2006. They paid $400 in brokerage
commissions. On July 21, 2013, Software Corporation distributed a 2-for-1
stock split. The fair market value at the time of the split was $100 per share.
j. On July 21, 2008, Emelio’s father gave him 100 shares of stock in Flex Corporation.
His father paid $35 per share in June 1999. The fair market value at
the date of the gift was $45 per share.
Based on the information provided, determine the initial basis of each of Emelio
and Charita’s assets. If more than one basis is possible, list the alternatives and
explain when each basis would apply.
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more