REG- Taxation & Prop Trans

Question 1

Like Kind Exchange

Answer 1

Gain = Lower of Boot or Realized (FMV Equip + cash + Debt relief - Debt acquired - Basis) Loss = postponed

Question 2

Involuntary conversion

Answer 2

Gain = Lower of realized or $ not reinvested (Ordinary gain = recapture; 1231 gain = remaining)

Question 3

Related party transactions

Answer 3

Lineage & 50% corp stock; Ordinary ST gain & No losses

Question 4

Personal AMT adjustments

Answer 4

Standard Ded
HELOC Interest (not for improvement)
Medical <10%
Personal &amp; Dep exemption
Local SALT
2% Misc

Question 5

Child Tax

Answer 5

Mini Deduction = Lower of $1,050 or Earned + 350

Parents rate = Unearned - 2,100

Question 6

NOL Personal Casualty

Answer 6

Lower Adjusted FV or Basis; Total loss = extent of basis

Ins Proceeds - $100 - (10% AGI)

Question 7

Investment Tax

Answer 7

3.8% of lower of Net Investment Inc or (AGI - 250,000)

Question 8

Gifts

Answer 8

Gain Basis = Donor Basis
Loss Basis = Lower of Donor Basis or FV @ gift
No G/L if between