Ef 120. Among the properties included in the gross estate of the decedentat the time of death is a three-story commercial building with a fairmarket value of P13,000,000. During the settlement of the estateand before the last day of paying the estate tax, the said property isdestroyed by fire. The fair market value at the time of the incidentwas P12,000,000.The amount of deductible loss will be

The fair value is that value of property at which property can be sold in the market and that is…

Among the properties included in the gross estate of the t the time of death is a three-story commercial building narket value of P13,000,000. During the settlement of t nd before the last day of paying the estate tax, the said lestroyed by fire. The fair market value at the time of the

Among the properties included in the gross estate of the t the time of death is a three-story commercial building narket value of P13,000,000. During the settlement of t nd before the last day of paying the estate tax, the said lestroyed by fire. The fair market value at the time of the

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 15MCQ

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A resident citizen acquired a property for use in his business. After a devastatingtyphoon, the machinery suffered partial damage. The following were made available:Cost P570,000Accumulated depreciation 300,000Restoration cost 300,000Estimated useful life 5 yearsThe taxpayer received insurance proceeds of P50,000 to cover the loss.Determine the amount of allowable deductions
Rose dies with passive activity property having an adjusted basis of $111,600, suspended losses of $35,712, and a fair market value at the date of her death of $156,240. Of the $35,712 suspended loss existing at the time of Rose's death, how much is deductible on her final return or by the beneficiary? The basis for the property is _______ to $_________; therefore, _________ of the $35,712 suspended loss is deductible on Rose's final return or by the beneficiary.
Bart's investment property was condemned. His basis in the property was $100000. He received a net award of $120,000. Later that same year, he purchased a replacement property for $150,000. What is the amount of gain recognized after the replacement property is purchased?
Rebecca Botson purchased a personal residence for $286,000. It had a fair market value of $300,000 in the current year when it was damaged by a flood that resulted in the entire area being declared a federal disaster area. The fair market value after the flood was $240,000 and insurance proceeds totaled $15,000. What is the net amount of federal casualty loss she can claim if her adjusted gross income is $120,000?
Which of the following statements with respect to the depreciation of property under MACRS is incorrect? Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service. If a taxpayer elects to use the straight-line method of depreciation for property in the 5 -year class, all other 5 -year class property acquired during the year must also be depreciated using the straight-line method. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid-quarter convention. Real property acquired after 1986 must be depreciated using the straight-line method. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.
Chad owned an office building that was destroyed in a tornado. The area was declared a Federal disaster area. The adjusted basis of the building at the time was 890,000. After the deductible, Chad received an insurance check for 850,000. He used the 850,000 to purchase a new building that same year. How much is Chads recognized loss, and what is his basis in the new building?
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An individual has net income of $147,500 for the current year. In the current year, the individual donates a depreciable property with a FMV of $300,000, a capital cost and ACB of $225,000 and a UCC $147,000. It is the only property in its CCA class and no additions are made in the year and subsequent to the gift. If the individual elects to have the donation valued at its FMV, what is the maximum amount that this individual can claim as the basis for his charitable donations tax credit for the current year? Question 6 options: $110,625 $139,500 $148,875 $ 300,000
1. List five events that would likely qualify as a casualty: 2. Generally, casualty losses of personal use property are deductible only if the loss resulted from a Presidentially declared disaster. TrueFalse 3. Calculate the amount of the casualty loss deduction, if any, that would claimed given that a business warehouse was completely destroyed by fire: FMV of the warehouse before the fire $600,000 FMV of the warehouse after the fire $0 Basis of the warehouse $500,000 Insurance recovery $400,000 4. Assume the same facts as in (3) above except that the warehouse was not completely destroyed and the FMV of the warehouse after the fire was $450,000 and the insurance recovery was $100,000. Now what would be the amount of the casualty loss deduction?
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