Question 1

A theft loss of $10,000 cash by an individual results in a $10,000 casualty loss deduction.

Accepted Answer

A) True 
 B)False

Question 2

In early 2015,Conrad Corporation discovered their bookkeeper had embezzled $30,000 over the last three years at a rate of approximately $10,000 per year.Conrad also suffered uninsured hurricane damage of $40,000 late in 2015 in a presidentially declared disaster area.If Conrad wants to deduct its losses at the earliest time possible,what are the amounts (before any limitations)and year(s)of its loss deduction?

Accepted Answer

A) 2015 = $70,000 
B) 2014 = $30,000,2015 = $40,000 
C) 2014 = $40,000,2015 = $30,000 
D) 2013 = $10,000,2014 = $10,000; 2014 = $50,000 
A) 2015 = $70,000 
B) 2014 = $30,000,2015 = $40,000 
C) 2014 = $40,000,2015 = $30,000 
D) 2013 = $10,000,2014 = $10,000; 2014 = $50,000

Question 3

What is the taxpayer-use test in an involuntary conversion?

Accepted Answer

When investment realty is subject to an

Question 4

What are the time limits imposed on a nonsimultaneous exchange to qualify as like kind?

Accepted Answer

The taxpayer has 45 days from the date t

Question 5

If a taxpayer's personal residence is involuntarily converted,the taxpayer can only defer gain by acquiring a new residence in the required time period using IRC §1033.

Accepted Answer

A) True 
 B)False

Question 6

A taxpayer must transfer a minimum required amount of property,along with any services performed,to include the stock received in meeting the control requirement for a corporate formation.

Accepted Answer

A) True 
 B)False

Question 7

What is the control requirement to qualify a gain on transfer to a corporation for tax deferral?

Accepted Answer

To qualify for deferral of gai

Question 8

Georgia's home was damaged by flood.Its fair market value before and after the flood are $125,000 and $75,000,respectively.Its adjusted basis was $90,000.Georgia received $50,000 from her insurance company and she was able to have the house repaired for $40,000.What is the amount of Georgia's basis in the house after the repairs?

Accepted Answer

A) $ 40,000 
B) $ 80,000 
C) $ 90,000 
D) $125,000 
A) $ 40,000 
B) $ 80,000 
C) $ 90,000 
D) $125,000

Question 9

A transfers machines valued at $170,000 (basis = $150,000)along with $30,000 cash to AB Corporation and B transfers real property valued at $320,000 (basis = $310,000)to the corporation.A receives 40 percent of the outstanding stock and B receives 60 percent.B also receives $20,000 from the corporation.What is B's basis for his AB stock?

Accepted Answer

A) $340,000 
B)  $320,000 
C) $310,000 
D) $300,000 
A) $340,000 
B)  $320,000 
C) $310,000 
D) $300,000

Question 10

What effect do liabilities assumed by the partnership have on a partner's basis?

Accepted Answer

Liabilities of a partner assumed by a pa

Question 11

The taxpayer-use test for deferral of gain on an involuntary conversion requires the taxpayer to acquire property that has the same function or use as the involuntarily converted property that he or she used prior to the conversion.

Accepted Answer

A) True 
 B)False

A theft loss of $10,000 cash by an individual results in a $10,000 casualty loss deduction.

What is the taxpayer-use test in an involuntary conversion?

What are the time limits imposed on a nonsimultaneous exchange to qualify as like kind?

If a taxpayer's personal residence is involuntarily converted,the taxpayer can only defer gain by acquiring a new residence in the required time period using IRC §1033.

A taxpayer must transfer a minimum required amount of property,along with any services performed,to include the stock received in meeting the control requirement for a corporate formation.

What is the control requirement to qualify a gain on transfer to a corporation for tax deferral?

What effect do liabilities assumed by the partnership have on a partner's basis?

The taxpayer-use test for deferral of gain on an involuntary conversion requires the taxpayer to acquire property that has the same function or use as the involuntarily converted property that he or she used prior to the conversion.

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Income Taxation of Individuals

Wealth Transfer Taxes

Filters

Exam 8: Tax-Deferred Exchanges

A theft loss of $10,000 cash by an individual results in a $10,000 casualty loss deduction.

What is the taxpayer-use test in an involuntary conversion?

What are the time limits imposed on a nonsimultaneous exchange to qualify as like kind?

If a taxpayer's personal residence is involuntarily converted,the taxpayer can only defer gain by acquiring a new residence in the required time period using IRC §1033.

A taxpayer must transfer a minimum required amount of property,along with any services performed,to include the stock received in meeting the control requirement for a corporate formation.

What is the control requirement to qualify a gain on transfer to a corporation for tax deferral?

What effect do liabilities assumed by the partnership have on a partner's basis?

The taxpayer-use test for deferral of gain on an involuntary conversion requires the taxpayer to acquire property that has the same function or use as the involuntarily converted property that he or she used prior to the conversion.

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Income Taxation of Individuals

Wealth Transfer Taxes

Filters