Explanation:
we have to get The Amount and nature of recognized gain or loss for each transaction:
a. The condemnation proceeds = $15,000. allocable basis of acquired land = $40,000."
loss = $40,000 - $15,000
= $25,000
b. sale of truck = $3,500. the adjusted basis = 0
Gain = $3,500 - 0 = $3,500
c.
As rowing machine was sold for 4900 and is fully depreciated, with an adjusted basis of 0
Gain = $4,900 - 0 = $4,900
d. sale of apartment = 300000
adjusted basis = $124,783
when we subtract we get :
The Overall gain would be = $300,000 - $124,783 = $175,217
Unrecaptured Section gain = $150,000 - $124,783 = $25,217
Regular long-term capital gain = Overall gain - Uncaptured section gain
This is:
= $175,217 - $25,217 = $150,000
e. his yatch was stolen, it had cost $25,000. The fair market value = $19,600. he was insured for 50% of the original cost, of which he got $12,500 on December 1."
Then Tax loss = Fair market value - Amount received from insurance
$19600-$12,500 = $7,100
so we have here a tax loss of $7,100 ( before any AGI limitation),
f. he sold a Buick for $9,600. It was bought for $20,800."
Loss = $20,800 - $9,600 = $11,200
a non-deductible personal loss.
g. after his trampoline machine was stolen. fair market value was 8000, adjusted basis = 6000
Tax Loss = $6,000
lorenzos Adjusted Gross Income for 2019 = $102,000 + $3,500 + $4,900 + $150,000 - $6,000 = $254,400
