...for 450,000. In order to explain to Bob about his tax consequences, we should calculate the property disposition capital gain. According to the IRS Publication 434, capital gains is explained as: Capital Gains Basis, adjusted basis, amount realized, fair market value, and amount recognized are defined next. You need to know these definitions to figure your gain or loss. Basis. The cost or purchase price of property is usually its basis for figuring the gain or loss from its sale or other disposition. However, if you acquired the property by gift, inheritance, or in some way other than buying it, you must use a basis other than its...
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...LAW OF TRANSFER OF PROPERTY SEMESTER VI SESSION 2012-17 COURT ROOM EXERCISE-VIII One Mr. Sandeep was the owner of a farmhouse situated near the outskirts of Ranchi. This farmhouse was surrounded by agricultural land also owned by him. This entire property used to produce a good amount of pecuniary benefits for Mr. Sandeep. He used to donate a big share of the income generated for various social purposes. He had earned a very good name in the city by such acts of charity. While most of the people of Ranchi praised Sandeep for the acts of kindness, his own family members were not very much in agreement with the actions of Sandeep. However they were helpless as whatever the entire property was, it was all earned by the hardwork and effort put in by Mr. Sandeep, and he was also having the ownership rights of the same. The family members were actually apprehensive that Sandeep might donate the property for the charitable purposes. They have actually requested many a times to Sandeep not to involve so much into the charitable purposes. Actually Sandeep was the eldest brother of the family and he had two more brothers Rajesh and Alok, two having wives Priya and Mala respectively, wheras Sandeep never married. On the persuasion of the family, Sandeep tried to convince them that he was not going to donate the entire property for the charitable purpose. Sandeep made an absolute disposition for 1/3rd of the property in favour of the unborn child of Mala, and created life interest...
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...19, 2007) 6% | 8 20% | Misc. tangible capital property. Furniture, fixtures, outdoor advertising signs, equipment (photocopiers, fridge, telephone, tools costing $500+, not included in another class) | 10 | Automotive equip. Cars, van, truck, tractor, wagon, trailer 30% | 10.1 30% | Passenger vehicle with cost in excess of prescribed limit ($30k if acquired after 2000). Separate class. Deemed cost 30k, add HST | 12 100% | Tools, instruments, kitchen utensils < $500. Linen, uniforms, dies, moulds, rental video cassettes, computer software. | 13 | Leasehold interest | 14 | Patent, franchise, concession, licence for limited period.no prorate | 17 8% | Roads, parking lots, sidewalks, airplane runways, storage areas, similar surface construction | 29 50%Or 30 | Machinery and equipment used in manufacturing or processing (acquired after Mar 18, 2007 and before 2016). CCA is 50%, straight-line basis, half-year rule applies. After 2016: class 43, with 30% declining balance rate | 43 30% | Manufacturing and processing machinery and equipment acquired after 2016 | 44 25% | Patents and rights to use patented information acquired for limited or unlimited period | 50 55% | General purpose electronic data processing equip. and systems software for the equipment (acquired after Mar 18, 2007) | | PUP | LPP | Carry forward | Nope | 7 years (100%) | Carry back | Nope | 3 years (100%) | Proceeds of disposition | Greater of proceeds or $1000 | Same as PUP | ...
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...there was additional receipt of separate cash in addition to the book value of the real estate already in possession, it is the amount with the deduction of the same, and if cash or other values were paid in addition, it is the amount with the addition of the same. Furthermore, during the purchase of real estate, if the purchase was completed on the condition of assumption of existing debt on the acquired real estate, the acquisition cost is the sum of cash price actually paid and assumed debt. 2.Parts related to ownership of real estate Real estate tax is a part of local tax and in the United States, only the property tax is imposed by local government. Fair market value of land and building are taken as standard for assessment in property tax. 35 states all impose the equal rate of tax on property and Washington D.C. in addition to 16 states uses the types of property in...
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...CHAPTER ONE GENERAL INTRODUCTION 1. INTRODUCTION Real estate can be described as Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water, immovable property of this nature, buildings or housing in general. Estate management is the operation, control, and oversight of commercial, industrial or residential real estate, usually on behalf of an owner. Management indicates a need for the property to be cared for, monitored and accountability given for its usable life and condition. This is much similar to the role of management in any business. This involves the processes, systems and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition. One important role of a Property Manager is that of liaison between the Owner of record and the actual tenant/lessee, providing a buffer for those owners who desire to distance themselves from their tenant constituency Other roles of the Property Manager include gathering data on tenant payment habits as well as maintaining and keeping records about tenant contacts, lease terms, property features, security deposits and payment history. 1.2 STATEMENT OF THE PROBLEM Property Managers encounter a number of problems when performing their role of estate management. These are discussed in brief...
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...created several “safe harbor” for trading on the US market and avoid taxes in order to attract foreign investors. A broker, dealers will be taxed because they are regularly engaged in the purchase and sale of stocks for profit or if he maintain an office or other fixed place of business in the US. 3. Other Situation- A. Effect of agency arrangements- b. Partnership, trusts and estates c. Banking- Not all lenders are commercial banks. It will be determined if a foreign person conducting a business by one or more of the activities of: Receiving deposits, making personal loan to the public, purchasing, selling for the public checks, bills etc. and issuing letters of credit to the public. d. Management of real property- The ownership and rental of real property does not create a business. If the foreign person has a management that managed on his behalf, it doesn’t not considered to be a business if its not regular, continuous (day to day) and considerable (opposite than...
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...Duckson Investment group | Duckson Investment Group | MKT 500; Assignment 2 | | Company Overview The Duckson Investment Group’s (DIG) primary business has been active in purchasing non-performing, residential notes and properties throughout the United States. The philosophy is to repair the units and rent them for the long term providing adequate investment returns to the investors. The company also has tremendous amount of experience with income producing investment properties. In addition to its real estate endeavors, DIG provides seed and growth capital to technology driven businesses. Utilization of the technology industry in conjunction with our land development projects allow us to provide cutting edge services to our clients. Our investment philosophy is to team up with extraordinary founders and operating executives and allow them to grow and scale their respective businesses to their full potential. We currently have invested more than $2.6 billion in total capital across 17.3 million square feet of real property across multiple asset classes and locations, representing $3.8 billion in total capitalization. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide. The focus of our company at this time is expanding our residential footprint out into the international market. We have focused our attentions to the country of India, due to the increasingly high poverty...
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...taking of privately owned property, using a rightful procedure involving due process and just compensation as it was intended to do when the policy was founded? Eminent domain is the inherent power of the government to take over a citizen's property for public use without the owner's consent. Initially, this public policy originated in the Middle Ages throughout the world. It became part of the British common law before reaching the United States where it was then illustrated in the US Constitution in 1791 (Britannica: eminent domain). The Fifth Amendment granted the federal government the right to exercise eminent domain, provided protection to individuals, and protected the property rights of citizens. Shortly after the due process clause of the Fourteenth Amendment made the federal guarantee of “just compensation” applicable to the states. The use of eminent domain power to promote economic development, particularly in urban centers of the United States, has become the focus of significant controversy in this present day. This is commonly done when the acquisition of property is needed for the completion of certain project. Projects intended for the public good such as highways, bridges, schools, and government buildings have been created from Eminent Domain. The policy pertains to every independent government. It requires very little constitutional recognition, and is considered an attribute of sovereignty. Under the US constitution, private property may be taken by eminent...
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...payment maybe for 30 to 60 90 day period. If the acceptance is made by a finance company, then it is called a trade acceptance. An example would be a finance company affiliated with a manufacturing company that must make large purchases of parts, either domestically or overseas. Since a finance company does not necessarily carry the same "comfort" weight as a bank, or in order to facilitate a series of payments and conditions, the acceptance may be backed by a Letter of credit issued by a bank. BANKER’S ACCEPTANCE “One method of obtaining low cost current financing within the framework of the banking system is through the use of banker’s acceptance.” It “accepts” the draft and returns it to the seller, retaining the papers for whatever disposition has been agreed upon with...
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...most difficult challenges are deciding who will succeed the current generation and how to preserve and build the company's value by providing for a smooth transition of ownership and management to the next generation. It is an understatement to say that estate and succession planning decisions involve complex questions of law, tax, and business planning. Such planning involves decisions about the types of property to own, the form of ownership and, for small business owners, the organization and operation of the business as well as the steps for passing that business on to the next generation. For the entrepreneurs, the only way to find the best plan is to work closely with the lawyer and other specialisb such as tax accountants, appraisJuly 2005 CPA W e a l t h P r o v i d e r ' 23 SUCCESSION PLANNING ers, life insuratice agents, bank trust officers, and financial planners, all of whom can provide other important sources of information that should be considered in the pianning process. However, the client must make the final decision about the organization and disposition of its business. For the CPA/financial planner, it is essential that the client be well informed about the choices available in order to make the wisest decision. • Making accommodations, if necessary, for intra-family feuds and normal family...
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...9-1-1 Call Abandoned 9-1-1 Abandoned Vehicle ABC Violation ABC Investigation Academy Assignment A.C.O.R.N. Test Additional Contacts Administrative Assignment Administration-Officer Meal Break Administrative Duties Alarm – Burglar Residence Alarm – Burglar Non-Residence Alarm – Fire Alarm – Hold up Alarm – Medical Alarm – Panic Alarm - Other Animal Bite Incident Animal Complaint General Animal Complaint-Dead Animal Animal Complaint-Deer Related Animal Call Animal Destroyed by Police Animal Complaint/Deer Related Animal Complaint/Barking Dogs Animal Complaint/Dog Bite Animal Complaint/Animal Bite Animal at Large (Stray Dog) Animal at Large (Other Complaints) Animal-Dogs Defecating Applicant Firearm Applicant Police Auxiliary Applicant Taxi / Limo Applicant All Others Assist Motorist Assist Other Agency A.T.R.A. Attempt to Serve Warrant Attempt to Serve Restraining Order Attended Death Aviation Accident Back-up Other Officer Back-up Other Agency Beat Check Bicycle Stop Blocked Driveway Boating Incident Bomb Scare Building/Business Check Building Code Violations Building/Business Check Open Door Car Wash CCH / III Request Checked Road Conditions (Weather) Child Safety Seat Installation Child Custody Dispute Church Crossing Civil Defense Test Civil Dispute Computer Issue – Vehicle Computer Issue – Desktop Community Policing Detail Consumption of Alcohol in Public Places Construction Hour Violation Canvassing Without...
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...Introduction All over the world, the newspapers announce almost weekly a story about the threatened destruction of a valuable natural resource. In June of 1989, for example, a New York Times article focused on the problem of overfishing in the Georges Bank about 150 miles off the New England coast. The population of fish is now only a quarter of what it was during the 1960s. Although everyone knows what the problem is, those concerned cannot agree towards a solution. The main problem in this case -and in many others- is how best to limit the use of natural resources so as to ensure their long-term economic viability. Some people recommend that the state control most natural resources to prevent their destruction and overuse; others recommend that privatizing those resources will solve the problem. The reality is not that simple; the logic of the tragedy of the commons depends on a set of assumptions about human motivation, about the rules of governing the use of the commons, and about the character of the common resource. According to Elinor Ostrom, “neither the state nor the market is uniformly successful in enabling individuals to sustain long-term, productive use of natural resource systems”. This means that there isn’t just “one way” to solve problems concerning common resources. Aristotle observed that “what is common to the greatest number has the least care bestowed upon it. Everyone thinks chiefly of his own, hardly at all of the common interest”. The purpose of...
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...of making the land succession process easier, cheaper and more accessible to the majority of Kenyan especially those living in rural areas. In the National Land Policy the government undertook to: 1. Sensitize and educate Kenyans on the provisions of the law of succession Act; 2. To expedite the application of the law of succession Act; and 3. To require that all Kenya Gazette notices pertaining to succession cases be posted at the lowest local administrative level and at market centres. 1.2: Purpose and Objectives of the study Land succession which is referred to as transmission in the Kenyan land act of 2012, is one of the most common methods of accessing land in Kenya. Succession is based on the traditional right to inherit property between...
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...Danone v. Wahaha: Lessons for Joint Ventures in China Steven M. Dickinson Harris Moure PLLC www.harrismoure.com Danone Group and its partner, Wahaha Group Company, are shareholders in a joint venture company that is the largest beverage company in China. A recent dispute between the partners now threatens to wreck the joint venture. What lessons can be learned from this dispute for investors considering new joint ventures in China? Disputes such as this are not inevitable in China. They can be avoided by following certain basic rules. Many of the most important rules were violated in this case. As a result, the problems that have arisen were almost certain to occur. I. The Facts A. Formation of the Joint Venture Company The Wahaha Joint Venture (“JV”) was formed in February, 1996. At the start, there were three participants in the JV. (1) Hangzhou Wahaha Food Group Co. Ltd. (“Wahaha Group”), led by its chairman Mr. Zong Qinghou. (2) Danone Group, a French corporation (“Danone”). (3) Bai Fu Qin Ltd., a Hong Kong corporation (“Baifu”). Danone and Baifu did not invest directly in the JV. Instead, Danone and Baifu formed Jin Jia Investment Co. Ltd., a Singapore corporation (“Jinjia”). Upon the formation of the JV, Wahaha Group owned 49% of the shares of the JV and Jinjia owned 51% of the shares of the JV. This structure led to immediate misunderstandings between the participants. From the Wahaha Group’s point of view, the division of ownership was 49% Wahaha Group, 25...
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...certain property transferred by the decedent through duly executed deeds and without valuable consideration, some to trustees and some directly to her children. The Commissioner of Internal Revenue held that, under § 402(c), the value of all this property at her death must be included in the gross state. He raised the assessment accordingly, and demanded the additional tax $34,662.65 -- here challenged. Section 402 directs that the gross estate shall be ascertained by including (among other things) the value at his death of all property "to the extent of any interest therein of which the decedent has at any time made a transfer, or with respect to which he has at any time created a trust, in contemplation of or intended to take effect in possession or enjoyment at or after his death (whether such transfer or trust is made or created before or after the passage of this act), except in case of a bona fide sale for a fair consideration in money or money's worth." Concerning transfer of the residences in 1917, the trial court charged “The effect of this transaction was to vest in the five sons named in the deed full and complete title to the property, including the right of disposition. They had a right to sell the property subject to the lease, and had all rights incident to ownership. There was here a gift completed during the lifetime of the donor. The act of 1918 did not purport to tax such gifts." "I have reached the conclusion, therefore, that, respecting the property conveyed...
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