REVIEW Flashcards
How do you calculate gain realized? Like-kind
FMV of new property + Boot received - Adjusted basis of property give up
How do you calculate gain recognized? like kind
Lesser of realized gain or boot received
How do you calculate basis on a like-kind exchange?
Adjusted basis of property given up + Gain recognized - Boot received + Boot Paid
Whats the max section 1244 loss that can be deducted by a single taxpayer in any year and how are they categorized?
50,000 and ordinary by definition
How do you calculate gain realized w/ liabilities assumed?
FMV new - Liabilities assumed/boot paid - ADJ basis old
How do you calculate gain recog w/ liabilities assumed?
Lesser of realized gain or boot received
How do you calculate basis of new property w/ liabilities assumed?
Adj basis of old + liabilities assumed/boot paid
How do you calculate gain realized? w/ boot in company as shareholder
Everything you got, (cash, common stock fv)- Adj Basis
Whats the nontaxable limit for gifts?
14,000
What is the standard deduction for a trust or an estate in the fiduciary income tax return?
$0 its not allowed
White Company acquires a machine (seven-year property) on January 10 of the current year, at a cost of $950,000. It was the only purchase of machinery White made in the current year. White makes the election to expense the maximum amount under §179. No election is made to use the straight-line method. Determine the total §179 deduction related to the machine for the current year assuming White has taxable income of $700,000 and assuming the rules in effect for the year 2015:
$0
$50,000
$950,000
$100,000
$0
Ted, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a vacation home. In March of the current year, he borrowed $50,000 on a home equity loan (secured by his city residence) and used the proceeds to acquire a luxury automobile. During the year, he paid the following amounts of interest: On his personal residence $ 15,500 On the condo $ 6,200 On the home equity loan $ 4,800 On credit card obligations $ 1,700 What amount, if any, must Ted recognize as an AMT adjustment for the year?
$4,800
$6,200
$0
$11,000
$4,800
Edouard owns a 30% interest in the profits and losses of the EFG Partnership. Edouard acquired his interest by contributing land to the partnership that had an adjusted basis of $30,000 and a fair market value of $65,000 on the contribution date. Soon after forming the partnership, the land is sold by the partnership to a third party for $70,000. How much of the $40,000 tax gain from the sale will the partnership allocate to Edouard?
$36,500
$3,500
$40,000
$1,500
$36,500
Mitch, who is age 69, single, and has no dependents, had AGI of $100,000 during the year. His potential itemized deductions were as follows:
Medical expenses (before percentage limitation)
$ 15,000
State income taxes
3,000
Real estate taxes
7,000
Mortgage (qualified housing and residence) interest
9,000
Cash contributions to various charities
4,000
Unreimbursed employee expenses (before percentage limitation)
4,300
What is the amount of Mitch’s AMT adjustment for itemized deductions for the year?
$14,800
$19,300
$25,800
$16,800
$14,800
Paul paid the real estate taxes on his rental apartment building. The real estate taxes are:
A deduction to arrive at adjusted gross income.
Not deductible.
A deduction from adjusted gross income.
A deduction from adjusted gross income, subject to a 2% AGI Floor.
A deduction to arrive at adjusted gross income.
The social security tax base is calculated on:
A self-employed person’s net profit from self-employment.
An employer’s gross wages less the deduction permitted for contributions to an individual retirement account.
An employee’s taxable income.
A self-employed person’s gross income from self-employment.
A self-employed person’s net profit from self-employment.
