RIII Flashcards
MACRS Class Life - 5yr
Cars, light trucks, computers, copiers
MACRS Class Life - 7 yr
office furniture, fixtures, equipment
MACRS Class Life - 10 yr
boats, water transport
MACRS Class Life - 15 yr
qualified improvements
MACRS Class Life - 27.5 ye
residential real prop
MACRS Class Life - 39 yr
non res real prop
MACRS half-year convention
for PERSONAL property (unless 40% > of purchases occurred during q4, then use mid quarter)
MACRS mid-month convention
real property! ALWAYS mid-month
MACRS cost recovery formula
purchase price * (1/# of years)
recognized gain on a like-kind exchange of real property
lesser of boot received and realized gain
realized gain = total received - basis of property given up
calculate gain on installment sale?
first calculate the gross profit, then calculate the gain on payments already paid
ex: if earned a gross profit of 25% and already paid 500K in year 1, the recognized gain would be 500K*.25 = 125K
what is the holding period of inherited shares?
long-term. no matter what
calculating basis of inherited shares
use the stepped up value (the FMV the date the shares are inherited)
maximum deduction for capital losses in excess of capital gains?
3K
which (short vs long) capital losses are deducted first?
short-term capital losses
