2024 – 1 Andre an accrual basis taxpayer rents a house for 1 000 per month The house was rented

1. Andre, an accrual-basis taxpayer, rents a house for $1,000 per month.  The house was rented from January through October, Year 1, when the tenant moved out and left substantial damages, and Andrea did not refund the $600 security deposit.  Andrea hired Jerry, a carpenter, to repair the house for $2,400, which included all labor and materials.  Jerry completed the work on November 30, Year 1.  Instead of paying Jerry for the work, Andrea rented the house to Jerry beginning December 1, Year 1.  They agreed the work would be in exchange for December of Year 1 and January of Year 2 rent, Jerry will begin paying rent of $1,000 per month on February 1, Year 2.  Jerry was not required to pay a security deposit.  What amount should Andrea include in gross rent on his income tax return for Year 1?

2. Renee teaches science at a public high school in Virginia.  She was selected to attend a 3-week seminar at a university in Hawaii.  The seminar will improve her skills in her current job, is not needed to meet the minimum education requirements of her current trade, and is not part of a program of study that will qualify her for a new trade or business.  Renee’s actual expenses for the seminar are as follows:

                Lodging                                                                                $1,050

                Meals                                                                    $526

                Airfares                                                                                $550

                Tax fares                                                              $50

                Tuition and books                                            $400

Renee was reimbursed $2,100 for her expenses under her employer’s nonaccountable plan.  What is the amount of expenses that Renee can deduct (without taking into account any limit on itemized deductions) on her tax return?        

3. During the year, Mr. Brock sold a piece of land he had purchased for $48,000.  The buyer paid cash of $60,000 and transferred to Mr. Brock a piece of farm equipment having a fair market value of $36,000.  The buyer also assumed Mr. Brock’s $12,000 loan on the land.  Mr. Brock paid selling expenses of $6,000. What is Mr. Brock’s recognized gain on this sale?