Day 7

Question 1

Involuntary Conversion: What is the basis of the new property?

Answer 1

Basis of the New Property = Cost of the New Property REDUCED by the Gain of the old property that was not recognized

MCQ-04116

Question 2

How many years is the taxpayer allowed to not recognize a gain when a replacement property was purchased?

Answer 2

3 years

MCQ-14926

Question 3

Gain/Loss Realized =

Answer 3

Amount Realized (FMV of New Property + Boot) - Adjusted Basis of Old Property

MCQ-06416

Question 4

Gain/Loss Recognized on a LKE =

Answer 4

Losses are never recognized in LKE

MCQ-06417

Question 5

Basis of New Property =

Answer 5

FMV of New Property - Deferred Gain + Deferred Loss

MCQ-06418

Question 6

Gain/Loss Realized =

Answer 6

Amount Realized (FMV of Property received) - Adjusted Basis (Property give up) - Boot Paid (Liability Assumed)

MCQ-06424

Question 7

Gain/Loss Recognized =

Answer 7

The Lesser of Realized Gain or Boot Received

MCQ-06424

Question 8

Gain Deferred =

Answer 8

Gain Realized - Gain Recognized

MCQ-06427

Question 9

Gain Recognized =

Answer 9

The Lesser of Realized Gain or Boot Received

MCQ-06906

Question 10

Is a Realized loss Recognized on a LKE?

Answer 10

Never

MCQ-01654

Question 11

Amount Realized =

Answer 11

FMV of New Property + Cash Boot + NET Debt Relief

MCQ-08963