REG mod 34a Flashcards
Can intangible property be personal property?
Yes. A patent is an example of intangible personal property.
How is a decedent’s property valued?
At fair market value on the date of death or the alternate valuation date (if elected).
What is the difference between a mechanic’s lien and an artisan’s lien?
A mechanic’s lien is applied to real property, whereas an artisan’s lien is applied to personal property.
Does Tenancy in Common allow any of the owners to transfer their ownership rights to their heirs?
Yes, this is permitted under Tenancy in Common.
Is inventory, held for more than one year, considered to be 1231 property?
No, inventory cannot be 1231 property.
Under what circumstances is inventory considered to be a capital asset?
Inventory is never considered to be a capital asset.
What is section 1231 property?
Real or personal property used in a trade or business that is held for more than one year.
In general, what is the basis of property?
In general, the basis is the cost of the property.
What is the basis of property that was received as a gift?
It depends on if the property is sold at a gain, a loss, or somewhere in between the donor’s basis and the fair market value on the date of the gift.
Over what time period are patents and copyrights amortized?
They are amortized over their respective useful lives.
What is the gain / loss on property that was received as a gift and sold for a price between the donor’s basis and the fair market value on the date of the gift?
There is no gain / loss if the property is subsequently sold for an amount that is in between the donor’s basis and the fair market value on the date of the gift.
What is a fixture?
An item that was personal property, but has been affixed to real property (relatively permanently affixed).
Name the two methods that may be used to calculate depletion?
The cost method and the percentage method.
Provide an example of real property.
Land, buildings fixed to the land
Does section 179 apply to used property?
Yes, it applies to new and used personal property that is used in a trade or business.
