Exam 8: Capital Gains and Losses

Johnny owned a gas station with an adjusted basis of $300,000.After it was destroyed in a fire,he received $560,000 from the insurance company.Within the next year,he bought a new gas station for $500,000.What is Johnny's recognized gain and what is the basis in the new building?

If a capital asset acquired on October 27,2009 is sold on April 30,2017 for a gain,the gain is a long-term capital gain.

Robert and Becca are in the 25 percent tax bracket.They have a long-term capital gain of $28,000 and a long-term capital loss of $17,000 on sales of stock in the current year.What will their capital gains tax be in the current year?

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

In 2017,the basis of a taxpayer's replacement residence is equal to the cost of the replacement residence less the gain which was deferred on the sale of the old residence.

Which of the following statements is true?

Which one of the following is a capital asset?

In the current year,Keyaki Construction Company exchanged an old truck,which cost $53,000 and had accumulated depreciation of $16,000,for a new truck having a fair market value of $65,000.In connection with the exchange,Keyaki paid $28,000 in cash.What is the tax basis of the new truck?