Property Taxation Flashcards
Alternate valuation date for assets is ______ after decedent’s death
6 months
If property is gifted and then sold at a gain (above FMV at date of donation and above donor’s basis), the reportable gain or loss is?
The selling price less the donor’s basis (not FMV)
If property is gifted and then sold at a loss (below FMV at date of donation and below donor’s basis), the reportable gain or loss is?
The lesser of donor’s basis or FMV less the selling price
If property is gifted and then sold between FMV at date of donation and the donor’s basis, the reportable gain or loss is?
Zero
If property under the alternate valuation date is sold prior to that date, the basis is _____.
FMV on the date sold
De minimus safe harbor rule allows Audited F/S companies to deduct property expenses for for less than $________ instead of depreciating it, and $_______ for Non-Audited F/S
$5,000 / $2,500
The holding period of assets acquired from a decedent if sold is always a (short/long)-term capital gain or loss.
LTCG/L
The basis upon transference of property upon the death is based on the (decedent’s basis/FMV)
FMV
Like-kind exchanges between _______ properties recognize no gain or loss (unless between two ________ or if _____ is received)
Real Estate / Countries / Boot
In individual may exclude up to $_________ if selling their primary residence if they lived in it for ___ out of ___ years.
$250,000
2/5 years primary residence
If boot is received in a like-kind exchange, gain recognized is the (lesser/greater) of _________ or _________
lesser of gain realized or boot received
Basis of property transferred as compensation is (basis/FMV on date of receipt)
FMV
Loss on disposals of personal-use assets (are/aren’t) deductible. If so how much?
are NOT
Wash sales are sales of stock within ___ days of purchasing them.
30 days
Realized loss (is/isn’t) recognized in a like-kind exchange?
is NOT
Exchanging business property for business property qualifies for Section ______ treatment
S1031
If condemnation from the state occurs on a property, any gain related from the transaction is $_____ and the basis of the new property is (prior adjusted basis/compensation received).
$0
Prior Basis
What is Section 1231 property?
Property used in Trade or Business for Involuntary Conversions that is held for a year or longer
Depreciable business property is a(n) (1231 property/capital asset)?
1231 property
Is a personal automobile a(n) (1231 property/capital asset)?
capital asset
For C Corps, what is the max capital losses can offset?
As much as capital gains
How far can capital losses for C corps be carried back/forward?
Back 3, forward 5
For S1245 property, any gain on sale is _________ up to the extent of depreciation taken, and the remainder is considered a ________.
Ordinary Income / Capital Gain
Order of netting for STCG/L and LTCG/L
Always net losses from main groups first (ST->ST, LT->LT) and in the order of highest tax bracket to lowest. Then ST->LT in the order of highest tax bracket to lowest.
A taxpayer (can/cannot) deduct partially worthless nonbusiness bad debt
CANNOT
Recaptured S1245 is the lesser of _________ or _________
Depreciation taken or gain recognized
S1244 stock losses are (ordinary/capital) losses
ORDINARY
If an individual sells property to a related party at a discount, how much of the loss is deductible?
0
If an individual sells to a related party at a discount, and then the recipient sells that property for a gain, how much of that is recognized?
Selling price less the disallowed related party loss is recognized, if it is negative then 0
Furniture and Fixtures are ___-year property for MACRS
7 year
Machinery, Equipment, and Light Trucks are ___-year property for MACRS
5 year
Intangibles are amortized (MACRS/Straight Line) over the course of ___ year(s)
SL, 15 years
