Day 8

Question 1

Basis of New Property =

Answer 1

FMV - Deferred Gain (Gain Realized)

MCQ-11067

Question 2

When is a Gain recognized in a LKE?

Answer 2

Only to the extent of Boot Received

MCQ-14658

Question 3

Gain Realized =

Answer 3

(FMV of new property + Boot) - Adjusted basis of old property

MCQ-06413

Question 4

Gain Deferred =

Answer 4

Gain Realized - Gain Recognized

MCQ-06415

Question 5

Gain/Loss Realized =

Answer 5

FMV of new property + Net Debt (Debt Relief - Debt Assumed) - Adjusted Basis of old property

MCQ-06429

Question 6

Gain/Loss Recognized =

Answer 6

The lesser of Gain Realized or Boot Received (Debt Relief)

MCQ-06430

Question 7

When do Wash Sale rules apply?

Answer 7

When a stock is sold and repurchased within 30 days

MCQ-04111

Question 8

When do you recognize the Gain/Loss of a personal use asset?

Answer 8

Only the Gain is taxable as a Capital Gain. Losses are Not deductible.

MCQ-08972

Question 9

Example of a Capital Asset?

Answer 9

Land held for personal use.

Assets held for personal use = Capital Assets

MCQ-04054