Business, 03.12.2021 23:40 Uwa

Stella purchased vacant land in 2007 that she subdivided for resale as lots. All 10 of the lots were sold during 2014. The lots had a tax basis of $12,000 each and sold for $35,000 each. Stella made no substantial improvements to the lots. She acted as her own real estate broker; so there were no sales expenses for selling the lots. Which of the following statements is correct? a. Stella must hold the lots for at least 10 years before she is eligible for the special capital gain treatment of Â§1237.

b. The $230,000 gain from the sale of the ten lots is all ordinary income.

c. All of the $230,000 gain from the sale of the ten lots is long-term capital gain.

d. To be eligible for the special capital gain treatment of Â§ 1237, Stella must be a real estate dealer.

e. None of these.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:00

Choose the list of the best uses for word processing software. lists, resumes, writing a book, and payroll data letters to your friends, resumes, spreadsheets, and school papers resumes, cover letters, databases, and crossword puzzles book reports, letters to your friends, resumes, and contracts

Answers: 2

Answer

Business, 22.06.2019 11:40

Select the correct answer. which is a benefit of planning for your future career? a.being less prepared after high school. b.having higher tuition in college. c.earning college credits in high school. d.ruining your chances of having a successful career.

Answers: 2

Answer

Business, 22.06.2019 14:30

Your own record of all your transactions. a. check register b. account statement

Answers: 1

Answer

Business, 23.06.2019 11:10

Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. danielle earns $55,000 per year and is in the 28 percent tax category. what annual tax savings does she get from her contribution? if her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar, how much will her employer put into her account this year?

Answers: 2

Answer

You know the right answer?

Stella purchased vacant land in 2007 that she subdivided for resale as lots. All 10 of the lots were...

Questions