Day 9 Flashcards
How should land and a shed used in trade or business be categories? What type of assets?
Section 1231 for both
MCQ-11784
What type of assets are your personal house and furnishings?
Capital Assets
MCQ-02194
How is foreclosure of property with a nonrecourse secured loan treated?
NOT Cancelation of Debt
It is treated as the sale of property
MCQ-08969
How is the loss on the sale of a personal residence treated?
Not deductible
MCQ-08707
What is the procedure in netting Short and Long Term gains/losses?
MCQ-05550
How is Section 1244 loss treated?
Ordinary Loss - NOT a Capital Loss
MCQ-08215
A short sale of stock results in ______ and what is the holding period?
Results in a Capital Asset sale and the holding period is based on the date the short sale was executed, NOT the closing date of the sale
MCQ-08889
When is non-business bad debt deductible?
When it is totally worthless
MCQ-08971
How are non-business bad debts treated?
Short Term Capital loses in the year that the debt becomes totally worthless
MCQ-15832
How long can Capital loses be carried forward?
Carried back 3 years and carried forward 5 years
Capital losses CANNOT offset ordinary income
MCQ-06728
What is 1231 property?
Business property held for 12 months or more
MCQ-08212
