Exam 7: Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

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The maximum amount of the § 121 gain exclusion on sale of a principal residence is $250,000 for a single individual and $500,000 for a married couple.

(True/False)

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Question 121

The bank forecloses on Lisa's apartment complex.The property had been pledged as security on a nonrecourse mortgage whose principal amount at the date of foreclosure is $750,000.The adjusted basis of the property is $480,000, and the fair market value is $750,000.What is Lisa's recognized gain or loss?

(Multiple Choice)

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Question 122

The terms "realized gain" and "recognized gain" can be used interchangeably; they mean the same thing.

(True/False)

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Question 123

If a seller assumes the buyer's liability on the property acquired, the buyer's adjusted basis for the property is increased by the amount of the liability assumed.

(True/False)

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Question 124

The nonrecognition of gains and losses under § 1031 is mandatory for gains and elective for losses.

(True/False)

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Question 125

Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000).No gift tax results.If Angela subsequently sells the stock for $10,000, what is her recognized gain or loss?

(Multiple Choice)

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Question 126

Showing 121 - 126 of 126

The maximum amount of the § 121 gain exclusion on sale of a principal residence is $250,000 for a single individual and $500,000 for a married couple.

The terms "realized gain" and "recognized gain" can be used interchangeably; they mean the same thing.

If a seller assumes the buyer's liability on the property acquired, the buyer's adjusted basis for the property is increased by the amount of the liability assumed.

The nonrecognition of gains and losses under § 1031 is mandatory for gains and elective for losses.

Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000).No gift tax results.If Angela subsequently sells the stock for $10,000, what is her recognized gain or loss?

Introduction to Taxation

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Individuals As the Taxpayer

Individuals: Income, Deductions, and Credits

Individuals As Employees and Proprietors

Corporations: Organization, Capital Structure, and Operating Rules

Corporations: Earnings and Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and the Alternative Minimum Tax

Comparative Forms of Doing Business

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