Assignment task: Please show calculation and explanation for each problem
Question 1: A sells their house to B on June 1, 2022. B pays A 450,000 in cash for the house. The real estate taxes on the house are $24,000 per year. The taxes are collected in arrears, so B will pay the tax collector $24,000 at the end of the year. For federal income tax purposes how much real estate will A be deemed to pay in 2022? B? What is the purchase and selling price of the house for federal tax purposes?
Question 2: Bill, Mary, and Joe are 1/3 partners in an unincorporated business. They are each married and each files their tax return as married filing jointly. The business generates 1,200,000 of business income. Overall, the business has 250,000 of W-2 wages and has $450,000 of capital. Bill's modified taxable income is $300,000, Mary's is $372,100, and Joe's is $1,000,000. What are each of their qualified business deduction for the year?