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1. For tax planning purposes, Arnold would like to report all of the income from the sale of his computers in the current tax year, rather than use the installment sale method. However, Arnold heard that use of the installment method is required when at least one (1) payment is to be received after the close of the tax year in which the sale occurs. What code section and subsection would allow Arnold to elect out of the installment sale method?
2. A taxpayer is trading real property used solely for business purposes for new real property to be used in his business. The real property originally cost $35,000 and he has taken $18,000 in depreciation. The old real property is currently worth $20,000 and the new real property the taxpayer wants in exchange is only worth $17,500. The taxpayer agrees to assume a liability secured by the new real property of $1,000. The other party also agrees to assume a liability secured by the taxpayers old real property of $3,500. What is the gain or loss realized by the taxpayer on this transaction? $3,000 gain $2,500 gain $500 gain $2,000 loss
3. What is the basic deduction calculation for the qualifying business income deduction? 30% Qualifying business income (QBI) 20% W-2 wages 20%, x Qualifying business income (QBI) 30% W-2 wages
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Rovenue no, of Temporary comeT 2of. Busine ncoma eanad a

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