Exam 21: Property Transactions: Capital Gains and Losses

A taxpayer purchased an asset for $50,000 several years ago.He is now planning to sell it.Under the recovery of basis doctrine the taxpayer will not recognize any gain or pay any related taxes unless he sells the asset for more than $50,000.

(True/False)

4.8/5

(40)

Question 141

Generally,gains resulting from the sale of collectibles such as antiques,stamps,or artwork are taxed to individual taxpayers at a maximum rate of 25%.

(True/False)

4.8/5

(41)

Question 142

Kate subdivides land held as an investment and Section 1237 is satisfied.The lots sell for $30,000 per lot (basis $10,000).Kate sells five lots in the first year.Kate's ordinary income is

(Multiple Choice)

4.9/5

(36)

Question 143

Section 1221 of the Code includes a comprehensive list of assets properly classified as capital assets.

(True/False)

4.8/5

(31)

Question 144

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

(True/False)

4.9/5

(30)

Question 145

Capital recoveries increase the adjusted basis of an asset.

(True/False)

5.0/5

(36)

Question 146

Darla sold an antique clock in 2017 for $3,000.She had purchased the clock in 2009 for $2,000.If she is otherwise in the 33% marginal tax bracket,what is the maximum tax rate on the capital gain on the sale of the clock?

(Multiple Choice)

4.8/5

(41)

Question 147

Showing 141 - 147 of 147

Exam 21: Property Transactions: Capital Gains and Losses

A taxpayer purchased an asset for $50,000 several years ago.He is now planning to sell it.Under the recovery of basis doctrine the taxpayer will not recognize any gain or pay any related taxes unless he sells the asset for more than $50,000.

Generally,gains resulting from the sale of collectibles such as antiques,stamps,or artwork are taxed to individual taxpayers at a maximum rate of 25%.

Kate subdivides land held as an investment and Section 1237 is satisfied.The lots sell for $30,000 per lot (basis $10,000).Kate sells five lots in the first year.Kate's ordinary income is

Section 1221 of the Code includes a comprehensive list of assets properly classified as capital assets.

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

Capital recoveries increase the adjusted basis of an asset.

Darla sold an antique clock in 2017 for $3,000.She had purchased the clock in 2009 for $2,000.If she is otherwise in the 33% marginal tax bracket,what is the maximum tax rate on the capital gain on the sale of the clock?

Tax Research

Corporate Formations and Capital Structure

the Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Ustaxation of Foreign-Related Transactions

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters