On September 1, of the Current Year, Samuel, a Cash-Basis

question 53

Multiple Choice

On September 1, of the current year, Samuel, a cash-basis taxpayer, sells his farm to Edward, also a cash-basis taxpayer for $100,000. Samuel's basis in the farm is $65,000. The real property tax year is the calendar year. Real estate taxes on the property for the year are $3,650 and are payable on April 1 of the following year. The sales agreement does not provide for apportionment of real estate taxes between the buyer and seller. Assume Samuel pays all of the real estate taxes prior to the sale. The effects of this sales structure will be:

---

Definitions:

Living Wills

A living will is a legal document that outlines a person's desires regarding their medical treatment in circumstances in which they are no longer able to express informed consent.

Euthanasia

The purposeful taking of life to relieve suffering.

Passive Euthanasia

The withholding or withdrawal of life-sustaining treatments from a patient, leading to death without any active intervention.

Living Will

A document prepared when a person is well, directing medical care providers to terminate life-sustaining treatment in the event he or she becomes incapacitatedand unable to speak