What is the amount of capital gain

Assignment Help Financial Management

Reference no: EM132040710

Tim bought a house for $500,000 in 2005 in California. When his daughter Mary got married in August 2014, he gave the house to Mary as a wedding gift. The fair market value of the house was $800,000. Mary and her husband Jerry have lived in the house since then.

1. The house is Mary and Jerry’s community property (True or False)

2. How much is the taxable gift? If Mary and Jerry sell the house for $900,000 in April 2017:

3. What is the amount of capital gain? Is the capital gain long term or short term?

4. How much is the capital gain tax assuming their income tax rate is 28%?

Reference no: EM132040710

Questions Cloud

What is the company cost of preferred stock-rp : The stock would pay a constant annual dividend of $4.50 a share. What is the company's cost of preferred stock, rp?

What factor determines the final price and quantity of labor : In a bilateral monopoly, like that of a players'union and major sports league, what factor determines the final price and quantity of labor? Why

Talking about free market capitalism : We have been talking about free market capitalism, which is about government NOT being involved in business activity in any way

Characterization of unemployment and inflation : According to Friedman and Phelps, which of the following statements is a correct characterization of unemployment and inflation in the United States since the 1

What is the amount of capital gain : The house is Mary and Jerry’s community property. What is the amount of capital gain? Is the capital gain long term or short term?

Key findings of the rand health insurance experiment : Key findings of the RAND Health Insurance Experiment (HIE) include (choose all that apply):

Benefit-cost ratio of choosing the best carpet cleaner : compute the incremental Benefit-Cost ratio of choosing the best carpet cleaner (in economic terms) and then indicate your recommendation as follows:

What is the amount dubois will receive on the sale : Dubois Inc. loans money to John Kruk Corporation in the amount of $836,000. What is the amount Dubois will receive on the sale of the note

Identify the factors that account for changes : Identify the factors that account for changes in a currency's value over the long run.

User Account

All Pages