Exam 8: Capital Gains and Losses

In the current year, Penny exchanges an investment property in Santa Barbara with a mountain view for a lot with an ocean view in a qualifying like-kind exchange. Penny's basis in the land given up is $100,000 and the property has a fair market value of $250,000. In exchange for her property, Penny receives land with a fair market value of $200,000 and cash of $20,000. In addition, the other party to the exchange assumes a mortgage loan on Penny's property of $30,000. a.Calculate Penny's realized gain, if any, on the exchange. b.Calculate Penny's recognized gain, if any, on the exchange. c.Calculate Penny's basis in the property received.

(Essay)

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Question 101

Which one of the following qualifies as a like-kind exchange?

(Multiple Choice)

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Question 102

Martha has a net capital loss of $17,000 and other ordinary taxable income of $45,000 for the current year. What is the amount of Martha's capital loss carryforward?

(Multiple Choice)

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Question 103

Joseph exchanged land (tax basis of $34,000), that he had held for 4 years as an investment, for similar land valued at $42,000 which was owned by Adrian. In connection with this transaction, Adrian assumed Joseph's $11,000 mortgage. As a result of this transaction Joseph should report a long-term capital gain of:

(Multiple Choice)

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Question 104

Net short-term capital gains may be offset by net long-term capital losses.

(True/False)

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Question 105

If not entirely used in one sale, the unused portion of the $250,000 exclusion on the sale of a taxpayer's principal residence may be used to reduce the recognized gain on the sale of the taxpayer's next residence.

(True/False)

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Question 106

For purposes of taxation of capital gains:

(Multiple Choice)

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Question 107

Which one of the following is true about Section 1231 assets?

(Multiple Choice)

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Question 108

In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capital gains, short-term capital losses of $6,000, and long-term capital gains of $4,000. What is Marc's adjusted gross income (AGI) for the current year?

(Multiple Choice)

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Question 109

Showing 101 - 109 of 109

Which one of the following qualifies as a like-kind exchange?

Martha has a net capital loss of $17,000 and other ordinary taxable income of $45,000 for the current year. What is the amount of Martha's capital loss carryforward?

Net short-term capital gains may be offset by net long-term capital losses.

If not entirely used in one sale, the unused portion of the $250,000 exclusion on the sale of a taxpayer's principal residence may be used to reduce the recognized gain on the sale of the taxpayer's next residence.

For purposes of taxation of capital gains:

Which one of the following is true about Section 1231 assets?

In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capital gains, short-term capital losses of $6,000, and long-term capital gains of $4,000. What is Marc's adjusted gross income (AGI) for the current year?

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