Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Tax Law Class Help - Amount Realized?
I'm having difficulty answering a question and realized if I can't figure out how to respond to this question I will not be successful with my tax take- home exam. Looking for insight on how to figure out the below problem:
Suzy has a piece of property worth $125,000. She has a mortgage of $25,000. Bill agrees to buy her property for $100,000 cash, and will assume Suzy's mortgage. What is Suzy's amount realized?
I'm really confused on what to do with the mortgage to figure out the amount realized.
Please help!!!
3 Answers
- Bostonian In MOLv 79 years agoFavorite Answer
No way to say from the information given. What is her basis?
- troLv 79 years ago
the value might be $125000 but how much did she pay for it? if she only has a $25000 loan she must have invested something close to $100000 herself
if she gets paid cash and the buyer takes over her loan, she has a wash,depending on her original investment--the 'worth' of $125000 does not tell us what she invested in it
- Anonymous9 years ago
"Amount realized" is what Bill paid for the property less unmentioned expenses of sale.
