Exam 5: Property Transactions: Capital Gains and Losses

The taxable portion of a gain from qualified small business stock is taxed at a top tax rate of

In 2011 Toni purchased 100 shares of common stock in Blue Corporation for $5,280. In 2012, Blue declared a stock dividend of one share of its common stock for each 10 shares held. This year, 2014, Blue's common stock split 2 for 1 at a time when the FMV was $80 a share. What is Toni's basis in each of her shares of the Blue Corporation stock if both distributions were tax-free?

Andrea died with an unused capital loss carryover of $3,300. The carryover

Funds borrowed and used to pay for an asset are not included in the cost until the borrowed funds are repaid.

Coretta sold the following securities during 2015: What is Coretta's net capital gain or loss result for the year?

Allison buys equipment and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. In addition, Allison pays an installation cost of $500 and a delivery cost of $800. Allison's basis in the asset is

Because of the locked-in effect, high capital gains tax rates may discourage taxpayer's from selling appreciated capital assets.

Olivia, a single taxpayer, has AGI of $280,000 which includes $220,000 of salary and $60,000 of investment income. She will pay Medicare tax on the $60,000 of investment income of

Chen had the following capital asset transactions during 2015: What is the adjusted net capital gain or loss and the related tax due to the above transactions, assuming Chen has a 25% marginal tax rate?

Gina owns 100 shares of XYZ common stock with a $12,000 basis and a $25,000 FMV. She receives 100 stock rights with a total FMV of $15,000. Answer the following: a. What is the basis of the 100 shares of stock? b. What is the basis of the 100 stock rights?

How long must a capital asset be held to qualify for long-term treatment?

Tina, whose marginal tax rate is 33%, has the following capital gains this year: What is the increase in income tax caused by these items (ignore the Medicare tax on net investment income)?

Net long-term capital gains receive preferential tax treatment if they exceed net short-term capital losses.

During the current year, Nancy had the following transactions: What is the amount of her capital loss deduction for the current year, and what is the amount and character of her capital loss carryover?

Adjusted net capital gain is taxed at 15% for taxpayers with marginal tax rates of 15% or higher, but less than 39.6%.

Stock purchased on December 15, 2014, which becomes worthless in March 2015 produces a STCL since the holding period is one year or less.

An uncle gifts a parcel of land to his niece, and he has to pay $25,000 of gift taxes. The land has appreciated substantially since he purchased it 20 year ago. The niece's basis in the land will be the uncle's cost plus the full $25,000 of gift taxes paid by the uncle.

Kathleen received land as a gift from her grandfather. At the time of the gift, the land had a FMV of $105,000 and an adjusted basis of $85,000 to Kathleen's grandfather. The grandfather did not have any gift taxes due. One year later, Kathleen sold the land for $110,000. What was her gain or (loss) on this transaction?

A taxpayer reports capital gains and losses on

To be considered a Section 1202 gain, the stock being sold must meet all of the following characteristics except