Comments on: Hr Block Homework Problem Help!?

By: Ali M

Ali M — Thu, 25 Feb 2010 00:36:34 +0000

I am assuming that you are asking how to figure the property basis after 5 yrs.
New Property Basis= (Property cost – Land value) – Accumilated Depreciation
Straightline Depreciation =(cost of property – land value) / 27.5 yrs
160000 – 75000 = 85000
85000 / 27.5=3091 Annual Depreciation Cost
3091 X 5 = 15455 Accumilated Depreciation
85000 – 15455 = 69545 New Property Basis
I hope this answer you second part of the question.
Good luck!

By: Bostonian In MO

Bostonian In MO — Thu, 25 Feb 2010 00:01:19 +0000

Auto loan interest: Not deductible unless it’s a business expense. And if only part of the use is for business, you must apportion between personal and business use based upon the number of personal miles and business miles driven.
Land sale: With a basis of $160,000 and a net proceeds of $75,000 you have a long-term capital loss. If you don’t have sufficient capital gains to use it up this year, you can only use $3,000 of it against other income this year and must carry forward the rest.
If your work is correct without these entries, you’ve screwed up somewhere else.

By: xtraheav

xtraheav — Wed, 24 Feb 2010 23:31:52 +0000

1. Unless the auto is used for business purposes, then the interest in non deductible,
2. Long tern Capital Loss ( 85,000 ) Schedule D
There is a maximum capital of ($3,000) for an individual per year until used up,.
Land is a non-depreciable asset,
Hope this helps