On september 1, of the current year, james, a cash-basis taxpayer, sells his cottage to bill, also a cash-basis taxpayer, for $100,000. james' basis in the cottage is $65,000. the real property tax year is the calendar year. real estate taxes on the property for the year are $3,650 and are payable in november of the current year. the sales agreement does not provide for apportionment of real estate taxes between the buyer and seller. assume bill pays all of the real estate taxes in the current year. the effects of this sales structure will be?
(a) taxes allocated to james $-0-, taxes allocated to bill $3,650, effect on james' gain effect on gain
(b) taxes allocated to james $3,650, taxes allocated to bill -$-0-, effect on james' gain dec. gain by $1,220
(c) taxes allocated to james $2,430, taxes alocated to bill $1,220, effect on james' gain inc. gain by $2,430
(d) taxes allocated to james $1,220, taxes allocated to bill $2,430, effect on james' gain inc. gain by $1,220
depending on how much you have to put in the account, and a cd, or certificate of deposit will be a good start, if you don't need to access the money. if you take money out before it matures, you pay a penalty or forfeit the interest.
i think other wise because if we are 16 and voting then we are bound to make mistakes in voting that we will later regret in other words voting age at 18 gives us more time to mature and think about what we want in life..
are there any choices? (multiple choice, word bank, etc.)