6

Question 1

Listed Property

Answer 1

isted property includes the following: passenger automobiles, other transportation vehicles (e.g., truck), entertainment or recreational property (e.g., video camera), and computers and peripherals not exclusively used at a regular place of business (e.g., home-office).

Question 2

Section 1250 Property Taxes on Gain

Answer 2

Sec. 1250, realized gain must be recognized as ordinary income to the extent of any depreciation taken in excess of depreciation under the straight-line method.

Question 3

Section 1250 Property Includes

Answer 3

Real property such as a building or its structural components

Question 4

A vehicle used directly in the trade or business of transporting persons or property for hire is a passenger vehicle for listed property purposes.

Answer 4

For listed property purposes, vehicles that are used to transport for compensation are not considered passenger vehicles.

Question 5

Sec. 197 intangible asset

Answer 5

A workforce in place, including its composition, terms, and conditions (contractual or otherwise) of employment

Question 6

A gain on the disposition of Sec. 1245 property is treated as ordinary income to the extent of…

Answer 6

Depreciation allowed or allowable.

Question 7

Which of the following assets are depreciable or amortizable for federal income tax purposes?

1. Land
2. Personal residence
3. Rental residence
4. Inventory
5. Acquired goodwill
6. Business automobile

Answer 7

3, 5, and 6.

Sec. 167(a) provides a depreciation deduction with respect to property used in a trade or business or held for the production of income. A rental residence and a business automobile are both used in a trade or business or for the production of income. Therefore, they are depreciable. Goodwill that is acquired (as contrasted to internally created amounts) is amortizable under Sec. 197.

Question 8

ADS is required by law for…

Answer 8

any tangible property used predominantly outside the United States, any tax-exempt use property, and any tax-exempt bond-financed property.

Question 9

Under GDS, depreciable improvements to land are….

Answer 9

15-year property

Question 10

Sec. 280F limits the first-year capital recovery deduction for automobiles to…

Answer 10

$3,160 for 2012 which must be reduced by personal use for the automobile during the year

Question 11

Non Compete covenant is amortized over…

Answer 11

a 15 year period- the term of the non-compete is irrelevant