Property Dispositions

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Business Income,Deductions,and Accounting Methods
Property Acquisition and Cost Recovery
Property Dispositions
Entities Overview
Corporate Operations
Accounting for Income Taxes
Corporate Taxation: Nonliquidating Distributions
Corporate Formation,Neorganization,and Liquidation
Forming and Operating Partnerships
Dispositions of Partnership Interests and Partnership Distributions
S Corporations
State and Local Taxes
The Ustaxation of Multinational Transactions
Transfer Taxes and Wealth Planning

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Question 1

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The amount realized is the sale proceeds less the adjusted basis.

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Question 2

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Generally,the amount realized is everything of value received in a sale less selling expenses.

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Question 3

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The adjusted basis is the cost basis less cost recovery deductions.

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Question 4

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An asset's tax-adjusted basis is usually greater than its book-adjusted basis.

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Question 5

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The gain or loss realized on the sale of an asset is the amount realized less the adjusted basis.

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Question 6

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The gain or loss realized on the sale of an asset is always recognized for tax purposes.

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Question 7

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All tax gains and losses are ultimately characterized as either ordinary or capital.

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Question 8

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Ordinary gains and losses are obtained on the sale of investments.

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Question 9

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Accounts receivable and inventory are examples of ordinary assets.

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Question 10

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Assets held for investment and personal use assets are examples of capital assets.

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Question 11

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§1231 assets include all assets used in a trade or business.

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Question 12

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A parcel of land is always a capital asset.

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Question 13

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Taxpayers can recognize a taxable gain on the sale of an asset even though an asset's real economic value has declined.

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Question 14

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After application of the look-back rule,net §1231 gains become capital while net §1231 losses become ordinary.

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Question 15

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Depreciation recapture changes both the amount and character of a gain.

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Question 16

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Only accelerated depreciation is recaptured for §1245 assets.

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Question 17

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§1250 recaptures the excess of accelerated depreciation over straight line depreciation on real property placed in service between 1981 and 1986 as ordinary income.

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Question 18

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For corporations,§291 recaptures 20 percent of the lesser of depreciation taken or the realized gain as ordinary income.

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Question 19

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Unrecaptured §1250 gain is taxed at a maximum rate of 25 percent.

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Question 20

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Unrecaptured §1250 gains apply only to individuals.

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