During 2016, Candace Spencer presents the following information:
Salary of $60,000
New bank loan (proceeds used to buy a personal automobile) of $15,000
Alimony paid of $4,000
Pass-through income received of $12,000
Gift from a rich aunt of $10,000
Assuming Candace files as head of household for 2016, her AGI would be:
None of these answers is correct
$78,000
$76,000
$93,000
$68,000
and
The bank forecloses on a house owned by Ty Coon (because he was insolvent), which he had used as his personal residence. The property has been pledged as security on a mortgage, whose outstanding principal on the date of foreclosure is $750,000. Ty Coon's adjusted basis in the house is $480,000, and its fair market value is $750,000. After the foreclosure, Ty Coon was still insolvent.
As a result of the foreclosure, Ty Coon has a:
Realized gain of $270,000
Recognized gain of $0
Realized loss of $480,000
Recognized loss of $480,000
Realized gain of $270,000
Recognized gain of $270,000
Realized loss of $750,000
Recognized loss of $480,000
Realized loss of $750,000
Recognized loss of $0