FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Property Transactions

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 21

Essay

Review LaterAdd Note

Review Later

What effect does a deductible casualty loss have on the adjusted basis of property?

Correct Answer

verified

A deductible casualt...

View Answer

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

What kinds of property do not qualify under the like-kind provisions?

Correct Answer

verified

The property exchanged may not qualify f...

View Answer

Show Answer

Question 23

Essay

Review LaterAdd Note

Tariq sold certain U.S.Government bonds and State of Oregon bonds at a loss to offset short-term capital gain from a previous transaction.He felt that the U.S.Government and State of Oregon bonds were "good" investments,so he repurchased identical securities within one week.Do these transactions constitute wash sales?

Define fair market value as it relates to property transactions.

What is a deathbed gift and what tax consequences apply?

Jake exchanges an airplane used in his business for a smaller airplane to be used in his business.His adjusted basis for the airplane is $325,000 and the fair market value is $310,000.The fair market value of the smaller airplane is $300,000.In addition,Jake receives cash of $10,000.

Monica sells a parcel of land to her son,Elbert,for $90,000.Monica's adjusted basis is $100,000.Three years later,Elbert gives the land to his fiancée,Karen.At that date,the land is worth $104,000.No gift tax is paid.Since Elbert is going to be stationed in the U.S.Army in Germany for 3 years,they do not plan on being married until his tour is completed.Six months after receiving the land,Karen sells it for $110,000.At the same time,Karen sends Elbert a "Dear John" email.Calculate Karen's realized and recognized gain or loss.

Ed and Cheryl have been married for 27 years.They own land jointly with a basis of $300,000.Ed dies in 2011,when the fair market value of the land is $500,000.Under the joint ownership arrangement,the land passed to Cheryl.

Elbert gives stock worth $28,000 (no gift tax resulted)to his friend,Jeff,on June 8,2011.Elbert purchased the stock on September 1,2004,and his adjusted basis is $22,000.Jeff dies on December 8,2012,and bequeaths the stock to Elbert.At that date,the fair market value of the stock is $31,000.

Lois received nontaxable stock rights with a fair market value of $4,000.The fair market value of the stock on which the rights were received is $24,000 (cost $14,000).Assume the rights are exercised by paying $31,000 plus the rights.Discuss how to calculate the basis of the old stock and the basis of the new stock.

Amanda uses a delivery van in her business.The adjusted basis is $29,000,and the fair market value is $25,000.The delivery van is stolen and Amanda receives insurance proceeds of $25,000.Determine Amanda's realized and recognized gain or loss.

Discuss the logic for mandatory deferral of realized gain or loss for a § 1031 like-kind exchange.

Sidney exchanges equipment used in his business in a like-kind exchange.The property exchanged is as follows: The other party assumes the liability.

Justin owns 1,000 shares of Oriole Corporation common stock (adjusted basis of $9,800).On April 27,2011,he sells 300 shares for $2,800,while on May 5,2011,he purchases 200 shares for $2,500.

Discuss the relationship between the postponement of realized gain under § 1031 (like-kind exchanges)and the adjusted basis and holding period for the replacement property.

Under what circumstances may a partial § 121 exclusion be available even though the taxpayer has used the § 121 exclusion within the two-year period preceding the sale of the current residence?

Taylor owns common stock in Taupe,Inc.,with an adjusted basis of $100,000.She receives a preferred stock dividend which is nontaxable.

Taxpayer acquired a personal residence ten years ago when he was 50 years old.During this period he has occupied the residence for only nine months (out of 12)each year due to winter vacations in Florida.Is taxpayer eligible for exclusion of gain under § 121?

Maurice sells his personal use automobile at a realized loss.Under what circumstances can Maurice deduct the loss?

Discuss the treatment of losses from involuntary conversions.