Split-use home
Article Abstract:
A hypothetical tax case involving the gain made on the sale of a duplex is examined and discussed. The case, which involves a woman who acquired a two-unit duplex and lived in one unit while renting out the other, brings up the question of how the woman would compute the amount of gain if she were to sell the duplex 13 years after acquiring it. It is concluded that the amount of gain would be $90,000 after factoring out original cost, capital improvements, depreciation until sale, selling price and selling expenses.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Sale to pay divorce settlement not incident to divorce
Article Abstract:
The IRS has released an advisory that clarifies the computation of tax on the gain realized from the sale of real property governed by a divorce settlement. Citing Section 1041(a), the IRS ruled that it would be the taxpayer who sold the real estate who would owe tax on the gain rather than the taxpayer's former spouse, since the sale was not done on behalf or her ex-husband even though it was true that he derived substantial benefit from the sale of the property.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Casualty insurance proceeds
Article Abstract:
A hypothetical tax case involving casualty insurance proceeds is examined and discussed. The case, which involves a man who vacates his apartment after a fire, raises the question of how the man should compute his income after receiving $1,100 from his insurance company. After factoring out the man's living expenses while billeted at a motel, it was concluded that he would have to declare only $400 income from his casualty insurance proceeds.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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