R4 - Property Taxation

Question 1

If an asset is held exactly one year, is it considered short-term or long-term?

Answer 1

Short-term

Question 2

What gains/losses are excluded from the tax return?

Answer 2

HIDE IT WRaP
Homeowners exclusion
Involuntary conversion
Divorce property settlement
Exchange of like-kind property (business)
Installment sale
Treasury capital & stock

Wash sale losses
Related party losses
and
Personal losses

Question 3

How long does business property have to be reacquired from an involuntary conversion?

Answer 3

3 years (2 years for personal property)

Question 4

When boot is received in a like-kind exchange, what is the gain recognized?

Answer 4

The lesser of the realized gain or the boot received

Question 5

How is basis calculated in a like-kind exchange where boot is received?

Answer 5

Adjusted basis of property given up + gain (never loss) recognized - boot received + boot paid

Question 6

How is earned revenue calculated under the installment sale method?

Answer 6

Cash collections x gross profit percentage (gross profit/sales price)

Question 7

When must the mid-quarter convention be used?

Answer 7

When more than 40% of depreciable personal property is placed in service is the last quarter of the year

Question 8

T/F: A loss is never recognized in a like-kind exchange

Answer 8

True