Tabitha sells real estate on March 2, 2017 for $260,000. The buyer, Ramona, pays

Question

Tabitha sells real estate on March 2, 2017 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.

Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume 365 days in a 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 $________

Explanation / Answer

The deduction of property Tax as per Pub 17 is available to the buyer and seller proportionally for the part of year owned by the buyers and sellers.

Hence, please find the answer as per below:

$ 869.0411 of the real estate taxes is apportioned to and is deductible by the seller, Tabitha, and $ 4330.9589 of the taxes is deductible by Ramona. Ramona's basis in the property is $ 259,130.9589 and after deduction the basis will be $ 254,800 and the amount realized by Tabitha from the sale is $ 259,130.9589

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.