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Butoxors [25]
3 years ago
14

Jerry bought his home 15 years ago for $60,000. Three years ago, Jerry married Debbie and she moved into the same house and has

lived there since. If they sell Jerry's house in the current year for $340,000, what is their taxable gain on a joint tax return?
$0
$30,000
$280,000
$155,000
Business
1 answer:
AnnyKZ [126]3 years ago
4 0

Answer:

The correct answer to the following question is option A) $0

Explanation:

Given information  -

House bought 15 years ago by Jerry at - $60,000

Jerry and her wife Debbie sold the house for - $340,000

The realized gain for Jerry and Debbie on the sale of house - $280,000 ( $340,000 - $60,000 )

Jerry and Debbie wants to file joint tax return , and they are allowed an exclusion up to $500,000. Which means if the amount of gain doesn't exceed $500,000, then they won't have to pay tax on this gain.

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liraira [26]

Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is 5/2 bushels of squash.

Opportunity costs are the possible advantages which any person or  investor  or any company forgoes while deciding between the  two options.

Opportunity costs are invisible in nature. An opportunity cost is simply by definition is the difference between the expected returns of each option and this is also  the formula for doing so.

To learn more about opportunity cost here

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4 0
1 year ago
Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income
frez [133]

Answer:

'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.

Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.

Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:

  1. Taxes should be sufficient to fulfill the government's requirements
  2. Taxes should be convenient for the government to implement and for the citizens to pay
  3. Taxes should be efficient economically
  4. Taxes should be fair

There may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences

Does this proposed change in Jurisdiction E's tax law meet the definition of a tax preference? Explain briefly.

In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.

By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.

Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction's financial condition by $300,000. On what assumptions is this forecast based?

The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.

The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000

6 0
3 years ago
How do businesses and the society benefit from marketing?
Verdich [7]

Answer:

Marketing stimulates a competitive economy, promotes products and services, and targets consumers who are most likely to become purchasers. Higher sales for a company that employs effective marketing strategies translate into expansion, job creation, higher government tax revenue, and eventually, overall growth.

HAVE A GOOD DAY!

5 0
3 years ago
1
katen-ka-za [31]

Answer:

A

Explanation:

8 0
2 years ago
Which of the following is a retirement plan offered by banks and investment companies in which an individual can deposit money t
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Roth IRA would be the answer.
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3 years ago
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