Exam 12: Non-Recognition Transactions

Rosilyn trades her old business-use car with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new business-use car valued at $9,000 plus $3,000 cash from Bob's Auto Sales and Loan Company.Bob assumes Rosilyn's loan balance.What is Rosilyn's basis in her new car?

(Multiple Choice)

4.9/5

(42)

Question 41

Which of the tax concept(s)allow for the deferral of gains on nonrecognition transactions? I.Capital Recovery Concept. II.Ability to Pay Concept.

(Multiple Choice)

4.9/5

(41)

Question 42

When two qualified assets are exchanged and their fair market values are not equal,additional nonqualifying property referred to as "boot" can be used to equalize the transaction without disqualifying the nonrecognition transaction.

(True/False)

4.7/5

(35)

Question 43

The deferral of a gain realized on an involuntary conversion is mandatory.

(True/False)

4.8/5

(38)

Question 44

Which of the following qualify as a like-kind exchange? -Personal residence for an apartment building.

(Multiple Choice)

4.9/5

(41)

Question 45

Lindsey exchanges investment real estate parcels with Donna.Lindsay's adjusted basis in the property is $400,000,and it is encumbered by a mortgage liability of $200,000.Donna assumes the mortgage.Donna's property is appraised at $1,000,000 and is subject to a $100,000 liability.Lindsey assumes the liability.If no cash is exchanged,what is Lindsey's basis in the new real estate?

(Multiple Choice)

4.9/5

(34)

Question 46

Nancy acquired office equipment for her business three years ago at a cost of $15,000.During the current year,she exchanges the equipment for different equipment with a fair market value of $9,000.MACRS depreciation on the original equipment was $9,828.The exchange qualifies as a like-kind exchange.Immediately after the exchange Nancy sells the new equipment for $9,000 cash.What is the amount and character of the gain recognized?

(Multiple Choice)

4.8/5

(39)

Question 47

Which of the following qualifies as a like-kind exchange of property? I.Commercial retail building and its land for an office building and its land. II.Louisiana Oil,Inc.common stock for Louisiana Oil,Inc.corporate bonds.

(Multiple Choice)

4.7/5

(30)

Question 48

Charlotte purchases a residence for $105,000 on April 13,2004.On July 1,2014,she marries Howard and they use Charlotte's house as their principal residence.If they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.Which of the following statements is/are correct concerning the sale of their personal residence?

(Multiple Choice)

4.9/5

(40)

Question 49

The basis of replacement property in a nonrecognition transaction is the adjusted basis of the property received less any deferred gain.

(True/False)

5.0/5

(32)

Question 50

Match each statement with the correct term below. -Realized gain

(Multiple Choice)

4.8/5

(46)

Question 51

Which of the following qualifies as a like-kind exchange of property? I.Registered trademark for a copyright. II.A 2009 Chevy,business-use automobile for a 2010 Ford,business-use automobile

(Multiple Choice)

4.8/5

(41)

Question 52

An involuntary conversion occurs whenever a loss (but not a gain)is realized from a transaction that occurs against the taxpayer's will.

(True/False)

4.9/5

(33)

Question 53

Which of the following qualify as a like-kind exchange? -A Cadillac automobile used 100% for business for a Ford Mustang automobile used 100% for business.

(Multiple Choice)

4.8/5

(38)

Question 54

Roscoe receives real estate appraised at $200,000 and cash of $10,000 from Cathy in exchange for Roscoe's investment realty with a basis of $170,000.Roscoe plans to hold the new realty for investment.What is the amount realized for the property given up by Roscoe?

(Multiple Choice)

4.7/5

(35)

Question 55

In each of the following cases,determine the amount of realized gain or loss and the recognized gain or loss: a.Silvia sells her house for $100,000 and she pays $8,000 in commissions on the sale. She paid $110,000 for the house 2 years earlier. b.In July 2015, Carmen, who is single, is transferred to Dallas. She had purchased a new home in June 2016 for $130,000. Carmen sells the house for $165,000 and pays a commission of $10,000 on the sale. c.Conrad is single and sells his principal residence for $350,000. He pays selling expenses of $20,000. Conrad purchased the house for $65,000 in 1986.

(Essay)

4.8/5

(37)

Question 56

No taxable gain or loss is recognized on a like-kind exchange of an investment asset for a similar asset that will be held for investment if both assets consist of

(Multiple Choice)

5.0/5

(34)

Question 57

The recognition of a loss realized on an involuntary conversion is mandatory.

(True/False)

4.9/5

(30)

Question 58

Which of the following is/are correct regarding involuntary conversions? I.Gains may be deferred if the property involuntarily converted is replaced with property that is similar to or related in service or use to the converted property. II.Deferral of gains is elective only if direct conversion is made into similar property.

(Multiple Choice)

4.9/5

(36)

Question 59

For a transaction to qualify as a third-party exchange, I.The exchange must be completed within 1 year of the first exchange. II.The property exchanged must be identified within 45 days of the first exchange.

(Multiple Choice)

4.8/5

(38)

Question 60

Showing 41 - 60 of 112

Rosilyn trades her old business-use car with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new business-use car valued at $9,000 plus $3,000 cash from Bob's Auto Sales and Loan Company.Bob assumes Rosilyn's loan balance.What is Rosilyn's basis in her new car?

Which of the tax concept(s)allow for the deferral of gains on nonrecognition transactions? I.Capital Recovery Concept. II.Ability to Pay Concept.

When two qualified assets are exchanged and their fair market values are not equal,additional nonqualifying property referred to as "boot" can be used to equalize the transaction without disqualifying the nonrecognition transaction.

The deferral of a gain realized on an involuntary conversion is mandatory.

Which of the following qualify as a like-kind exchange? -Personal residence for an apartment building.

Which of the following qualifies as a like-kind exchange of property? I.Commercial retail building and its land for an office building and its land. II.Louisiana Oil,Inc.common stock for Louisiana Oil,Inc.corporate bonds.

The basis of replacement property in a nonrecognition transaction is the adjusted basis of the property received less any deferred gain.

Match each statement with the correct term below. -Realized gain

Which of the following qualifies as a like-kind exchange of property? I.Registered trademark for a copyright. II.A 2009 Chevy,business-use automobile for a 2010 Ford,business-use automobile

An involuntary conversion occurs whenever a loss (but not a gain)is realized from a transaction that occurs against the taxpayer's will.

Which of the following qualify as a like-kind exchange? -A Cadillac automobile used 100% for business for a Ford Mustang automobile used 100% for business.

Roscoe receives real estate appraised at $200,000 and cash of $10,000 from Cathy in exchange for Roscoe's investment realty with a basis of $170,000.Roscoe plans to hold the new realty for investment.What is the amount realized for the property given up by Roscoe?

No taxable gain or loss is recognized on a like-kind exchange of an investment asset for a similar asset that will be held for investment if both assets consist of

The recognition of a loss realized on an involuntary conversion is mandatory.

For a transaction to qualify as a third-party exchange, I.The exchange must be completed within 1 year of the first exchange. II.The property exchanged must be identified within 45 days of the first exchange.

Federal Income Taxation-An Overview

Income Tax Concepts

Income Sources

Income Exclusions

Introduction to Business Expenses

Business Expenses

Losses-Deductions and Limitations

Taxation of Individuals

Acquisitions of Property

Cost Recovery on Property: Depreciation, depletion, and Amortization

Property Dispositions

Choice of Business Entity-General Tax and Nontax Factorsformation

Choice of Business Entity-Operations and Distributions

Choice of Business Entity-Other Considerations

Tax Research

Filters

Exam 12: Non-Recognition Transactions

Which of the tax concept(s)allow for the deferral of gains on nonrecognition transactions? I.Capital Recovery Concept. II.Ability to Pay Concept. ​

When two qualified assets are exchanged and their fair market values are not equal,additional nonqualifying property referred to as "boot" can be used to equalize the transaction without disqualifying the nonrecognition transaction.

The deferral of a gain realized on an involuntary conversion is mandatory.

Which of the following qualify as a like-kind exchange? -Personal residence for an apartment building.

Which of the following qualifies as a like-kind exchange of property? I.Commercial retail building and its land for an office building and its land. II.Louisiana Oil,Inc.common stock for Louisiana Oil,Inc.corporate bonds. ​

The basis of replacement property in a nonrecognition transaction is the adjusted basis of the property received less any deferred gain.

Match each statement with the correct term below. -Realized gain

Which of the following qualifies as a like-kind exchange of property? I.Registered trademark for a copyright. II.A 2009 Chevy,business-use automobile for a 2010 Ford,business-use automobile ​

An involuntary conversion occurs whenever a loss (but not a gain)is realized from a transaction that occurs against the taxpayer's will.

Which of the following qualify as a like-kind exchange? -A Cadillac automobile used 100% for business for a Ford Mustang automobile used 100% for business.

Roscoe receives real estate appraised at $200,000 and cash of $10,000 from Cathy in exchange for Roscoe's investment realty with a basis of $170,000.Roscoe plans to hold the new realty for investment.What is the amount realized for the property given up by Roscoe?

No taxable gain or loss is recognized on a like-kind exchange of an investment asset for a similar asset that will be held for investment if both assets consist of

The recognition of a loss realized on an involuntary conversion is mandatory.

For a transaction to qualify as a third-party exchange, I.The exchange must be completed within 1 year of the first exchange. II.The property exchanged must be identified within 45 days of the first exchange. ​

Federal Income Taxation-An Overview

Income Tax Concepts

Income Sources

Income Exclusions

Introduction to Business Expenses

Business Expenses

Losses-Deductions and Limitations

Taxation of Individuals

Acquisitions of Property

Cost Recovery on Property: Depreciation, depletion, and Amortization

Property Dispositions

Choice of Business Entity-General Tax and Nontax Factorsformation

Choice of Business Entity-Operations and Distributions

Choice of Business Entity-Other Considerations

Tax Research

Filters

Which of the tax concept(s)allow for the deferral of gains on nonrecognition transactions? I.Capital Recovery Concept. II.Ability to Pay Concept.

Which of the following qualifies as a like-kind exchange of property? I.Commercial retail building and its land for an office building and its land. II.Louisiana Oil,Inc.common stock for Louisiana Oil,Inc.corporate bonds.

Which of the following qualifies as a like-kind exchange of property? I.Registered trademark for a copyright. II.A 2009 Chevy,business-use automobile for a 2010 Ford,business-use automobile

For a transaction to qualify as a third-party exchange, I.The exchange must be completed within 1 year of the first exchange. II.The property exchanged must be identified within 45 days of the first exchange.