Gains on dealing in property

Question 1

gains on dealings in property and section #

Answer 1

is gross income section 1001

Question 2

two concepts of gains on dealing in property

Answer 2

AR- Amount realized

and Adjusted basis

Question 3

Adjusted basis section

Answer 3

61 a 3; 1016

Question 4

default rule for basis

Answer 4

cost - what you paid, 1011

Question 5

basis 1st way

Answer 5

after tax investment in propetty

Question 6

In Amount realized you get bases

Answer 6

back tax free

Question 7

adjusted basis includes

Answer 7

improvements to property- you can add to basis.

Question 8

taxpayers like 3 things

Answer 8

1. tax exempt income
2. deferred tax
3. basis

Question 9

basis- second “Easy way”

Answer 9

borrowed money

Question 10

borrowd money counts in basis because

Answer 10

notion that it will paid back with after tax income

Question 11

does refianncing count in basis:

Answer 11

depends on what the $ goes to. vaca- no romodeeling house, YES

Question 12

TAXES DEFERRED =

Answer 12

taxes saved/ interest free loan from govt.

Question 13

basis- and debt relief

Answer 13

included, just like you got cash. 1.001-2

Question 14

cash and basis

Answer 14

1001b

Question 15

how to calculate gains

Answer 15

1001 AR-AB

Question 16

NON REcognition if income SECTION

Answer 16

1031

Question 17

if you sell tracts of land in diffrent years

Answer 17

equitable apportionment must value tracts fairly, sellign expenses reduce AR

Question 18

Two ways to assume debt

Answer 18

1. novation 2. delegation of duties

Question 19

novation

Answer 19

purchaser replaces seller on debt as debtor. Lets seller of hook, Requires new agreement with buyer.

Question 20

delegation of duties

Answer 20

ii. Delegation of duties: But the seller remains liable if the purchaser doesn’t pay. Seller will always get indemnity clause where they can recover from the buyer.

Question 21

debt included in ar EVEN IF seller is liable section

Answer 21

1.1001 2 a 4