Taxes
Check received for December rent, $700, not deposited until January 4
b. Check for $1,100 to pay Bill's state income taxes mailed December 28, cashed January 7
c. Cash received in the amount of $500 for services to be rendered the following year
d. Interest of $800 credited to his savings account, added to Bill's account balance
e. Check received for January rent, $700, deposited on January 9
f. Charitable contribution of $300, charged on Bill's MasterCard
g. Bills totaling $2,000 sent for services rendered during the year, uncollected as of year-end
70. Comprehensive Problem. Do any of the transactions below qualify for installment reporting? If not, why not?
a. Sale of property in December, with payment received in full the following January at a gain
b. Sale of property at a loss, payments to be received in equal annual installments over seven years
c. Exchange of like-kind investment property where the transfer took place in two different years
d. Sale in one year at a gain, 90 percent of the proceeds received immediately, the remaining 10 percent in year two
e. Sale of securities at a gain, the proceeds being 13 percent a year of current fair market value to be received over the life of the seller
f. Sale of stock with zero basis for 10 percent of the gross life of the gross sales of a business for 11 years (Smith 13-48)
Smith, Harmelink & Hasselback. Federal Taxation: Comprehensive Topics. CCH, 2013.
b. Check for $1,100 to pay Bill's state income taxes mailed December 28, cashed January 7
c. Cash received in the amount of $500 for services to be rendered the following year
d. Interest of $800 credited to his savings account, added to Bill's account balance
e. Check received for January rent, $700, deposited on January 9
f. Charitable contribution of $300, charged on Bill's MasterCard
g. Bills totaling $2,000 sent for services rendered during the year, uncollected as of year-end
70. Comprehensive Problem. Do any of the transactions below qualify for installment reporting? If not, why not?
a. Sale of property in December, with payment received in full the following January at a gain
b. Sale of property at a loss, payments to be received in equal annual installments over seven years
c. Exchange of like-kind investment property where the transfer took place in two different years
d. Sale in one year at a gain, 90 percent of the proceeds received immediately, the remaining 10 percent in year two
e. Sale of securities at a gain, the proceeds being 13 percent a year of current fair market value to be received over the life of the seller
f. Sale of stock with zero basis for 10 percent of the gross life of the gross sales of a business for 11 years (Smith 13-48)
Smith, Harmelink & Hasselback. Federal Taxation: Comprehensive Topics. CCH, 2013.