Question 1

If each party in a like-kind exchange assumes a liability of the other party,only the net liability given or received is boot.

Accepted Answer

A) True 
 B)False

Question 2

An office building owned by Abby and used in her business was destroyed in a fire.Abby's adjusted basis in the building was $145,000 and its FMV was $180,000.Abby filed an insurance claim and she was reimbursed $160,000.In that same year,Abby invested $150,000 of the insurance proceeds in another business building.
a.Assume Abby made the proper election with regard to the involuntary conversion.What is the amount of gain to be recognized by Abby?
b.What is Abby's basis in the new building?

Accepted Answer

The answer of An office building owned by Abby and...

Question 3

In order for the gain on the sale of a personal residence to be excluded under Sec.121,a replacement residence must be purchased within two years.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is not true with regard to like-kind exchanges?

Accepted Answer

A)  Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange. 
B)  The holding period of like-kind property received includes the holding period of the property exchanged. 
C)  A loss is always recognized if the taxpayer transfers non-like-kind personal-use property (e.g. a personal-use car) in an otherwise like-kind exchange. 
D)  The basis of property received in an exchange is equal to the basis of the property exchanged less the boot received plus the gain recognized and less any loss recognized. 
A)  Nonrecognition of gains and losses is mandatory if the exchange is a like-kind exchange. 
B)  The holding period of like-kind property received includes the holding period of the property exchanged. 
C)  A loss is always recognized if the taxpayer transfers non-like-kind personal-use property (e.g. a personal-use car) in an otherwise like-kind exchange. 
D)  The basis of property received in an exchange is equal to the basis of the property exchanged less the boot received plus the gain recognized and less any loss recognized.

Question 5

All or part of gain realized on an involuntary conversion is deferred but not permanently excluded if qualifying replacement property is acquired within the requisite period of time.

Accepted Answer

A) True 
 B)False

If each party in a like-kind exchange assumes a liability of the other party,only the net liability given or received is boot.

In order for the gain on the sale of a personal residence to be excluded under Sec.121,a replacement residence must be purchased within two years.

Which of the following statements is not true with regard to like-kind exchanges?

All or part of gain realized on an involuntary conversion is deferred but not permanently excluded if qualifying replacement property is acquired within the requisite period of time.

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 12: Property Transactions: Nontaxable Exchanges

If each party in a like-kind exchange assumes a liability of the other party,only the net liability given or received is boot.

In order for the gain on the sale of a personal residence to be excluded under Sec.121,a replacement residence must be purchased within two years.

Which of the following statements is not true with regard to like-kind exchanges?

All or part of gain realized on an involuntary conversion is deferred but not permanently excluded if qualifying replacement property is acquired within the requisite period of time.

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters