Exam 11: Property Dispositions

Mary exchanged an office building used in her business for some land.Mary originally purchased the building for $45,000,and it had an adjusted basis of $20,000 at the time of the exchange.The land had a fair market value of $40,000.Mary also gave $4,000 to the seller in the transaction.What is Mary's adjusted basis in the land after the exchange?

An installment sale is any sale where at least a portion of the sale proceeds is received in a subsequent taxable year.

Which one of the following is not considered boot in a like-kind exchange?

Generally,the amount realized is everything of value received in a sale less selling expenses.

For a like-kind exchange,realized gain is deferred if the exchange is solely for like-kind property.

Which of the following is true regarding depreciation recapture?

Which of the following is not true regarding installment sales?

Depreciation recapture changes both the amount and character of a gain.

Sunshine LLC sold furniture for $75,000.Sunshine bought the furniture for $90,000 several years ago and has claimed $25,000 of depreciation expense on the machine.What is the amount and character of Sunshine's gain or loss?

The sale of computer equipment used in a trade or business for nine months results in which of the following types of gain or loss?

Sadie sold 10 shares of stock to her brother,George,for $500 16 months ago.Sadie had purchased the stock for $600 two years earlier.If George sells the stock for $700,what are the amount and character of his recognized gain or loss in the current year?

In a deferred like-kind exchange,the like-kind property to be received must be identified within 45 days and acquired within 180 days from the initial exchange.

A taxpayer that receives boot in a like-kind exchange resulting in a gain recognizes as gain the lesser of the fair market value of the boot received or the gain realized.

Which of the following sections recaptures or recharacterizes only corporate taxpayers' gains?

§1250 recaptures the excess of accelerated depreciation over straight-line depreciation on real property placed in service before 1987 as ordinary income.

Foreaker LLC sold a piece of land that it uses in its business for $52,000.Foreaker bought the land two years ago for $42,500.What is the amount and character of Foreaker's gain?

Which of the following is not a §1245 asset if held for more than one year?

Which one of the following is not true regarding a like-kind exchange?

Which of the following is true regarding the §1231 look-back rule?

Which of the following is not usually included in an asset's tax basis?