· Question 1
2 out of 2 points
Which of the following statements is false?
· Question 2
2 out of 2 points
Since wash sales do not apply to gains, it may be desirable to engage in this type of transaction before the end of the tax year.
· Question 3
2 out of 2 points
Carl sells his principal residence, which has an adjusted basis of $150,000 for $200,000. He incurs selling expenses of $20,000 and legal fees of $2,000. He had purchased another residence one month prior to the sale for $380,000. What is the recognized gain or loss and the basis of the replacement residence if the taxpayer elects to forgo the § 121 exclusion (exclusion of gain on sale of principal residence)?
· Question 4
2 out of 2 points
Over the past 20 years, Alfred has purchased 380 shares of Green, Inc., common stock. His first purchase was in 1992 when he acquired 30 shares for $20 a share. In 1997, Alfred bought 150 shares at $10 a share. In 2012, Alfred acquired 200 shares at $50 a share. Alfred intends to sell 125 shares at $60 per share in the current year (2013). If Alfreds objective is to minimize gain, what is his recognized gain?
· Question 5
2 out of 2 points
Jamie bought her house in 2008 for $395,000. Since then, she has deducted $70,000 in depreciation associated with her home office and has spent $45,000 replacing all the old pipes and plumbing. She sells the house on July 1, 2013. Her realtor charged $34,700 in commissions. Prior to listing the house with the realtor, she spent $300 advertising in the local newspaper. Sammy buys the house for $500,000 in cash, assumes her mortgage of $194,000, and pays property taxes of $4,200 for the entire year on December 1, 2013. What is Jamies adjusted basis at the date of the sale and the amount realized?
· Question 6
2 out of 2 points
Milts building which houses his retail sporting goods store is destroyed by a flood. Sandras warehouse which she is leasing to Milt to store the inventory of his business also is destroyed in the same flood. Both Milt and Sandra receive insurance proceeds that result in a realized gain. Sandra will have less flexibility than Milt in the type of building in which she can invest the proceeds and qualify for postponement treatment under § 1033 (nonrecognition of gain from an involuntary conversion).
· Question 7
2 out of 2 points
Which of the following statements is correct for a § 1033 involuntary conversion of an office building which is destroyed by fire?
· Question 8
2 out of 2 points
Elvis owns all of the stock of White Corporation. The accumulated earnings and profits of White Corporation at the beginning of the year are a deficit of $20,000. The current earnings and profits are $30,000. Elvis basis for his stock is $250,000. He receives a distribution of $300,000 on the last day of the tax year. How much dividend income and/or capital gain should Elvis report?
· Question 9
2 out of 2 points
If boot is received in a § 1031 like-kind exchange and gain is recognized, which formula correctly calculates the basis for the like-kind property received?
· Question 10
2 out of 2 points
Shari exchanges an office building in New Orleans (adjusted basis of $700,000) for an apartment building in Baton Rouge (fair market value of $900,000). In addition, she receives $100,000 of cash. Sharis recognized gain is $100,000 and her basis for the apartment building is $800,000 ($700,000 adjusted basis + $100,000 recognized gain).