R-4

Question 1

What is real property?

Answer 1

Land and all items fixed to it (buildings, sheds)

Question 2

What is personal property?

Answer 2

Machinery, equipment and automobiles.

Question 3

What are capital assets?

Answer 3

Personal automobile.
Furniture and Fixtures of tax payer
Stock and securities 
Personal property not used in business or trade
real property not used in business
Interest in partnership
Goodwill of corporation
copyrights purchased 
other assets held for investments

Question 4

What are non-capital assets?

Answer 4

Depreciable property used in business
Accounts and notes receivable
Copyrights held by original artists.

Question 5

Where does gains and losses show on tax return?

Answer 5

Schedule D

Question 6

What is basis for inherited property?

Answer 6

Fair market value at time of death becomes basis.

Question 7

What is form for like kind exchanges?

Answer 7

Form 8824

Question 8

What is the form for installment sale?

Answer 8

Form 6252

Question 9

What is wash sale rule?

Answer 9

A wash sale rule exists when stock is sold for a loss and repurchased within 30 days.

Question 10

What is individual and corporate capital losses?

Answer 10

Individual capital losses:
3000 forever
Corporate capital losses:
3 back and 5 carry forward.

Question 11

What is depreciation convention?

Answer 11

Machinery and Equipment:
Half Year convention
Mid-quarter convention (if over 40% assets are put in last quarter)

Real Estate:
Mid-month convention.

Question 12

How is intangibles amortized?

Answer 12

15 years straight line.

Question 13

What is 1245 and 1250 gains?

Answer 13

1245 is for machinery and equipment

1250 is for real property only.