Exam 7: Capital Gains and Other Sales of Property Schedule D and Form 4797

Gabriella,a single taxpayer,has wage income of $160,000.In addition,she has $7,000 in long-term capital losses,$1,000 in long-term capital gains,$3,000 in short-term capital gains,and $1,000 in short-term losses.What is Gabriella's AGI for 2016?

Currently,the maximum capital gain rate applied to a taxpayer in the 15% regular tax bracket is 0%.

A taxpayer has 6 separate capital gain transactions.Four of them are long-term and two are short-term transactions.Two of the long-term transactions have box 3 from Form 1099-B checked,one does not have box 3 from Form 1099-B checked,and there was no 1099-B received for one of the long-term transactions.One short-term transaction has box 3 from a 1099-B checked and the other transaction does not have box 3 from a 1099-B checked.How many Form 8949 must the taxpayer complete?

Which one of the following is a capital asset?

Heidi invested in a mid-sized local company with gross assets of $17,000,000.Heidi purchased 2,000 shares for $44,000 in 2000.In 2016,Heidi sold the stock for $84,000.How is the gain treated for tax purposes?

A capital asset includes all of the following except:

Jeannie purchased 1,000 shares in Course Developers for $10,000 on August 11,2015.The company went bankrupt on May 11,2016 with no hope of recovery for the shareholders.On what date is the stock deemed to be worthless and what is the nature of the loss?

A taxpayer purchased land in 2008 for $85,000 and sold it in 2016 for $75,000 cash.The buyer also assumed the mortgage of $5,000.What is the amount of gain/loss on the sale of the land?

Which of the following statements is incorrect regarding the gain or loss from the sale of property received as a gift?

On May 1,2015,Kelalani purchased land for $88,000 for use in her business.She sold it on May 1,2016,for $82,000.If there are no other sales of business or trade property,how is this loss treated for tax purposes on Kelalani's return?

The donee's basis in depreciated property when the FMV at the time of the gift is less than the donor's basis)is FMV at the time of the gift.

Dancing Feet Company,a sole proprietorship,acquired a building for use in the business on April 15,2014,for $475,000.Straight-line depreciation allowed was $25,386.Dancing Feet Company sold the building for $380,000 on May 1,2016: a.What is the adjusted basis of the property at the time of the sale? b.What is the amount of the gain loss)upon the sale of the building? c.What is the nature of the gain loss)?

Which of the following statements is correct regarding the sale of ordinary assets as discussed in this chapter?

Padraic purchased 50 shares of stock as an investment for the purchase price of $2,500 in 2013.In 2016 when the fair market value of the stock was $2,500,Padraic gave the stock to his sister,Fiona.If no gift tax is paid and Fiona sells the stock for $2,750 she will recognize:

Patrice sells a parcel of land for $50,000 cash and the buyer assumes Patrice's liability of $7,000 on the land.Patrice's basis in the land is $40,000.What is the gain or loss she will recognize on the sale?

Aneta sold an apartment building for $713,470 in 2016.She purchased the building in 2010 for $600,000 and has taken $151,806 in depreciation on the building.Assuming Aneta is in the 33% tax bracket,how is her gain taxed?

Section 1221 assets are any asset used in a trade or business.

Any Section 1245 gain is recognized as "ordinary" to the extent of the depreciation taken.

Hiroko,a single taxpayer,has wage income of $80,000.In addition,she has $5,000 in long-term capital losses,$4,000 in long-term capital gains,and $4,000 in short-term capital gains.What is Hiroko's AGI for 2016?

Ordinary gains or losses produced outside the normal course of business relate to the sale of business property held less than one year and do not include the sale of accounts receivable.