Question 1

What is the treatment given to personal casualty gains and losses?

Accepted Answer

Personal casualty gains and losses are f

Question 2

Which of the following is a capital asset?

Accepted Answer

A) Inventory held by a manufacturer 
B) Accounts receivable held by a dentist 
C) All property owned by a taxpayer other than property specifically noted in the law as an exception 
D) Depreciable property and real estate used in a trade or business 
A) Inventory held by a manufacturer 
B) Accounts receivable held by a dentist 
C) All property owned by a taxpayer other than property specifically noted in the law as an exception 
D) Depreciable property and real estate used in a trade or business

Question 3

In 2014, Tim sells Section 1245 property for $28,000 that he had purchased in 2008. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income?

Accepted Answer

A) $7,000 
B) $8,000 
C) $13,000 
D) $18,000 
E) None of the above is correct 
A) $7,000 
B) $8,000 
C) $13,000 
D) $18,000 
E) None of the above is correct

Question 4

Simonne, a single taxpayer, bought her home in La Jolla 25 years ago for $55,000. She has lived continuously in the home since she purchased it. In December, 2014, she sells her home for $395,000. What is Simonne's taxable gain on the sale?

Accepted Answer

A) $0 
B) $90,000 
C) $250,000 
D) $340,000 
A) $0 
B) $90,000 
C) $250,000 
D) $340,000

Question 5

If a taxpayer sells his personal residence and purchases a new residence, realized gain may be recognized.

Accepted Answer

A) True 
 B)False

Question 6

Casualty gains and losses from business or investment property:

Accepted Answer

A) May be treated differently depending on whether the property has been held 1 year or less or has been held over 1 year. 
B) Are treated the same as casualty gains and losses from personal property. 
C) Are subject to the 10 percent of adjusted gross income limitation. 
D) Are not subject to the depreciation recapture provisions. 
A) May be treated differently depending on whether the property has been held 1 year or less or has been held over 1 year. 
B) Are treated the same as casualty gains and losses from personal property. 
C) Are subject to the 10 percent of adjusted gross income limitation. 
D) Are not subject to the depreciation recapture provisions.

Question 7

Nick received a gift of stock from his father. Nick's father had purchased the stock 2 years earlier and his father's basis in the stock was $30,000. On the date of the gift, the stock had a fair market value of $25,000.
a.If Nick sells the stock for $33,000, calculate the amount of Nick's gain or loss on the transaction.
b.If Nick sells the stock for $22,000, calculate the amount of Nick's gain or loss on the transaction.
c.If Nick sells the stock for $27,000, calculate the amount of Nick's gain or loss on the transaction.

Accepted Answer

The answer of Nick received a gift of stock from...

What is the treatment given to personal casualty gains and losses?

Which of the following is a capital asset?

In 2014, Tim sells Section 1245 property for $28,000 that he had purchased in 2008. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income?

Simonne, a single taxpayer, bought her home in La Jolla 25 years ago for $55,000. She has lived continuously in the home since she purchased it. In December, 2014, she sells her home for $395,000. What is Simonne's taxable gain on the sale?

If a taxpayer sells his personal residence and purchases a new residence, realized gain may be recognized.

Casualty gains and losses from business or investment property:

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 8: Capital Gains and Losses

What is the treatment given to personal casualty gains and losses?

Which of the following is a capital asset?

In 2014, Tim sells Section 1245 property for $28,000 that he had purchased in 2008. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income?

Simonne, a single taxpayer, bought her home in La Jolla 25 years ago for $55,000. She has lived continuously in the home since she purchased it. In December, 2014, she sells her home for $395,000. What is Simonne's taxable gain on the sale?

If a taxpayer sells his personal residence and purchases a new residence, realized gain may be recognized.

Casualty gains and losses from business or investment property:

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters