Billy Dent, as the Owner of an Apartment Building

Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2011:

Received in Jan. 2011 rent that was due in Dec. 2010 $5,000.00

Received in Dec. 2010 rent not due until Jan. 2011 $4,000.00

Security deposit which is to be reunded when tenant vacants the apartment $500.00

How much rental income must Billy Dent include on his 2011 income tax return?

Received in Jan. 2011 rent that was due in Dec. 2010 $5,000.00

Received in Dec. 2010 rent not due until Jan. 2011 $4,000.00

Income tax return: $9,000.00

Security Deposit recevied that which would be refunded then it will not be included in the income tax

Problem 32:

Arnold and Barbara Cane were divorced in June 2011. Pursuant to the divorce decree, Arnold is obliged to perform as follows:

a. Transfer title of their personal home to Barbara. They purchased the house in 1998 and their basis today is $400,000. The fair market value of the house is $500,000. The house is subject to a 25-year, $250,000 mortgage.

Transfer of property is not taxable.

b. Arnold is to continue making payments on the house until it is fully paid off. In 2011, Arnold made payments totaling $18,000.

Payments are not alimony. The transction should not have any affect.

c. Arnold is to make $3,000 per month payments to Barbara. Of this amount one-half is for child support. The divorce decree further states that alimony is to cease upon the death of the wife. In 2011, he made six payments.

1500 * 6 = $ 9000.00

Barbara will report the $9,000 she receives in alimony as gross income for the 2011 tax year.year.

Arnold will report the $9,000 he pays in alimony as a deduction for the 2011 tax

Problem 26

A. Fluent, an investor in stocks and bonds, wanted to increase his