R4

Question 1

Formula for Gain/loss realized?

Answer 1

Fair market value of new auto + Boot received - Adjusted basis of auto given up

Question 2

Formula for gain/loss Recognized?

Answer 2

lesser of realized gain or boot received

Question 3

Formula for basis of new property (like-kind exchange)

Answer 3

Adjusted basis of property given up + Gain recognized - Boot received + Boot paid

Question 4

Installment method steps:

Answer 4

Step 1: Gross Profit
Step 2: Gross Profit %
Step 3: Taxable Gross Profit

Question 5

What is the simple rule of thumb for personal property recapture when there is a loss?

Answer 5

Loss = treat as ordinary loss ( no limitation)

Question 6

What is the simple rule of thumb for personal property recapture when there is ordinary income?

Answer 6

Ordinary income = gain to extent of accumulated depreciation

Question 7

What is the simple rule of thumb for personal property recapture when there is a Section 1231 (capital) gain?

Answer 7

Section 1231 (capital) gain = Gain for sale price in excess of original cost