Billy Dent, as the Owner of an Apartment Building
Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2011:
Received in Jan. 2011 rent that was due in Dec. 2010
$5,000.00
Received in Dec. 2010 rent not due until Jan. 2011
$4,000.00
Security deposit which is to be reunded when tenant vacants the apartment
$500.00
How much rental income must Billy Dent include on his 2011 income tax return?
Received in Jan. 2011 rent that was due in Dec. 2010
$5,000.00
Received in Dec. 2010 rent not due until Jan. 2011
$4,000.00
Income tax return:
$9,000.00
Security Deposit recevied that which would be refunded then it will not be included in the income tax
Problem 32:
Arnold and Barbara Cane were divorced in June 2011. Pursuant to the divorce decree, Arnold is obliged to perform as follows:
a. Transfer title of their personal home to Barbara. They purchased the house in 1998 and their basis today is $400,000. The fair market value of the house is $500,000. The house is subject to a 25-year, $250,000 mortgage.
Transfer of property is not taxable.
b. Arnold is to continue making payments on the house until it is fully paid off. In 2011, Arnold made payments totaling $18,000.
Payments are not alimony. The transction should not have any affect.
c. Arnold is to make $3,000 per month payments to Barbara. Of this amount one-half is for child support. The divorce decree further states that alimony is to cease upon the death of the wife. In 2011, he made six payments.
1500 * 6 = $ 9000.00
Barbara will report the $9,000 she receives in alimony as gross income for the 2011 tax year.year.
Arnold will report the $9,000 he pays in alimony as a deduction for the 2011 tax
Problem 26
A. Fluent, an investor in stocks and bonds, wanted to increase his