Mod 36 Wrong Answers

Question 1

When a stock is received as a gift and the property’s FMV is used on the date of the gift to determine the loss, the donee’s holding period…

Answer 1

Begins when gift is received

Question 2

Boot received includes both…

Answer 2

Cash and mortgage given away

Question 3

Worthless securities generally receive capital loss treatment. However if the loss is incurred by a corporation on its investment in an affiliated corporations, the loss is…

Answer 3

Generally treated as an ordinary loss

Question 4

Affiliated corporation

Answer 4

80% or more ownership

Question 5

A loss would be recognized between what 3 groups of family members?

Answer 5

1 inlaws

2 ancestors/descendants

3 uncles/nephews

Question 6

What is the amount of excess long term capital loss that can offset against taxable income for a corporation?

Answer 6

$0

Question 7

What is the treatment of a sale of an antique at a loss that was held for personal use?

Why?

Answer 7

Sale of antique at a loss is not deductible

Because held for personal use

Question 8

Definition of capital assets includes…2

Answer 8

1 investment property and property held for personal use

2 excludes property used in trade or business

Question 9

Property held for personal use example 2

Answer 9

1 personal residence and

2 furnishings

Question 10

A capital loss deduction for a married couple filing a joint return is…

Answer 10

$3,000

Question 11

When items have already been included in book income, taxable income is…

Answer 11

The same as book income

Question 12

With involuntary conversions, how do you calculate basis?

Answer 12

Basis = amount reinvested - deferred gain