Tim would like to postpone the gain he received on some condemned property. Under the involuntary conversion rules, Tim can postpone the gain if he purchases replacement property Within the same general geographical area Within a particular time period Before the end of the tax year Identical to the property condemned

Tim would like to postpone the gain he received on some condemned property. Under the involuntary conversion rules, Tim can postpone the gain if he purchases replacement property Within the same general geographical area Within a particular time period Before the end of the tax year Identical to the property condemned

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bruce is single and has adjusted gross income for the current year of $90,000 before any deduction for passive activity losses. He owns a duplex that he uses as rental property and this year his rental loss was $13,000. Bruce has no income from passive activities. Which of the following statements is true? Group of answer choices If Bruce actively participates in managing the rental property he can deduct the $13,000 loss against his other income. Bruce will not be able to deduct the $13,000 loss against his other income unless he materially participates in managing the property. Since Bruce’s income does not exceed $150,000 he can deduct the loss against his other income regardless of his role in managing the property. In no circumstance will Bruce be able to deduct the loss this year since he does not have any passive income.
Matthew's retail store was condemned by the state. The retail store had a basis of $452000 and a FMV of $482500. The state awarded Matthew $605000, which he used to purchase a qualified replacement property for $527100 within the replacement time period. Calculate the basis in there placement property for the involuntary conversion. A)$452000 B) $527100 C)$605000 D) $482500
On October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their personal residence, which they have owned and Iived in lor & years. The realized gain of $325,000 is excluded under 5121 (Sale of a Principal Residence). They purchase another personal residence for $525,000 on October 2, 2019. Alice's employer transfers her to the Denver office in August 2020. Jasper and Alice sell their Chicago residence on August 2, 2020 and they purchase a residence in Denver shortly thereafter. The realized gain on the sale is $300,000. Which of the following statements is true regarding the August 2020 sale? O Jasper and Alice cannot exclude any of the gain from the August 2020 sale because they did not own and lve in the home for at least 2 years. O Jasper and Alice can exclude $104,167 on the August 2020 sale O Jasper and Alice can exclude $208,333 on the August 2020 sale. O Jasper and Alice can exclude $250,000 on the August 2020 sale. O Jasper and Alice can exclude…
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For estate tax purposes, what date is used for valuation purposes? Multiple Choice Property is always valued at the date of distribution, Property is valued at the date of death although a reduction is allowed if the value declines within one year of death. Property is always valued at the date of death. Property is valued at the date of death unless the alternate date, which is the date of distribution or six months after death, whichever comes first, is selected.
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Pat’s investment real estate was condemned on November 14, 2016. On February 14, 2017, he received $250,000 for the property that had a basis of $210,000. What is the last date that Pat can acquire replacement property to avoid gain recognition? a. November 14, 2019 b. February 14, 2020 c. December 31, 2019 d. December 31, 2020 e. None of the above
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