Rosa owns a duplex and rents both units to tenants. Which one of the following expenditures is a deduction for tax purposes? A)Cost of repairing the front stairs. B)Cost of painting the interior of unit # 2 C)Both A & B
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Both options A and B involve costs related to maintaining and improving the rental property. Show more…
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Suppose as a personal financial advisor, your clients are considering purchasing income property. You find a duplex apartment unit that is for sale and learn that the maintenance costs, utilities, and taxes on it total $\$900$ per month. If the current owner receives monthly rental payments of $\$450$ and $\$380$ from the tenants, does the duplex produce a positive cash flow each month?
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Vladimir owned a duplex that he rented to tenants. He acquired the property several years ago for $296,000. He used the straight-line method of cost recovery, which totaled $75,000. Vladimir, who is in the 32% marginal income tax bracket, sold the property in February of the current year for $330,000. What is the amount and nature of the gain on the sale? A) $75,000 Section 1250 recapture B) $34,000 regular long-term capital gain, $75,000 Section 1250 recapture C) $34,000 regular long-term capital gain, $75,000 unrecaptured Section 1250 income D) $75,000 long-term capital gain
Akash M.
Robert bought a rental property ten years ago for $320,000, with $80,000 of the purchase price allocated to the land. Over the ten years, he claimed CCA such that his UCC at the beginning of this year for the building was $196,000. Robert sold the property this year for $520,000, with $180,000 of the sale price allocated to the land. Which of the following statements is correct? a) Robert has recapture of $44,000. b) Robert has recapture of $124,000. c) Robert has recapture of $144,000. d) Robert has a capital gain of $100,000. For vendors of taxable supplies who purchase goods for resale and make capital expenditures to be used in commercial activities, input tax credits can be claimed for GST/HST billed or paid on: a) All capital expenditures made during the period and goods sold during the period. b) A portion of capital expenditures based on their estimated service life and goods purchased for resale during the period. c) A portion of capital expenditures based on their estimated service life and goods sold during the period. d) All capital expenditures made during the period and goods purchased for resale during the period. Which of the following is a specified investment business? a) A business which principally derives its income from rental property and has less than 5 full-time employees. b) A business which principally derives its income from rental property and has more than 5 full-time employees. c) A business which principally derives its income from rental property and has 5 or more full-time employees. d) A business which actively derives its income from rental property and has more than 5 full-time employees.
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