User Account

All Pages

What are the tax consequences for Casper and Cecile

Assignment Help Accounting Basics
Reference no: EM132737843

Problem - Casper and Cecile divorced in 2018. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $55,000, and it had a market value of $88,000 on the date of the transfer. Cecile sold the stock for $77,000 a month after receiving it. In addition Casper is required to pay Cecile $2,750 a month in alimony. He made five payments to her during the year.

What are the tax consequences for Casper and Cecile regarding these transactions?

a. How much gain or loss does Casper recognize on the transfer of the stock?

b. Does Casper receive a deduction for the $13,750 alimony paid?

c. How much income does Cecile have from the $13,750 alimony received?

d. When Cecile sells the stock, how much does she report?

Reference no: EM132737843

Questions Cloud

What is the total amount of from agi deductions : What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method
What are the key resources available for a reputable hotel : What are the key resources available for a reputable hotel to effectively and successfully compete within its boundary and attain a competitive advantage?
How much should be reported as cash on December : Cash in Bank A- rank and file payroll account 200,000. How much should be reported as cash on December 31, 2020
What are some ways you give feedback : What are some ways you give feedback now that have worked well for you?
What are the tax consequences for Casper and Cecile : What are the tax consequences for Casper and Cecile regarding these transactions? Does Casper receive a deduction for the $13,750 alimony paid
List three important disclosure items that should be report : Disclose relevant terms, conditions, and restrictions. List three important disclosure items that should be reported in the footnotes in the annual report.
Do still need to send loan confirmation to bank of america : $140 million of loan outstanding from Banc of California. As an auditor, do you still need to send loan confirmation to Bank of America? Why or why not?
What is the core competency of pldt : What is the core competency of PLDT (Philippine Long Distance Telephone Company) at present?
Determine the average number of students waiting : Determine the average number of students waiting to get their forms at the Counter. What is the average length of time each spends at the Registrar

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd