Question

Question 13 of 75. A business use car held long-term and sold at a LOSS is treated as what Section property? O s179 O s1231 s1245 O $1250 Mark for folow up Question 14 of 75. lund is S/5,000. She incumed $5,000 in will she report the sale? expenses releted to the sale. The boyer pas Ruth sold land she parchased three months earier for use in her business Horo assumed Rut's $25.000 morigage on the property. What is the amount ef her g O25,000 Part 25,000, Pati O30,000, Part Os30 000 Part IV Mark for folon o Question 15 of 75. Dunng the tat year Jubus sold an oftice beildng that he had owned and rented to the same eant for 15 years. The bldng had bees depreciated using reglar MACRS. Juls sold the building at part of Form 4797 is the sale of the building reported and what IRC Section detemlees the tpe of paie ag Pat 1231 Part $1231 Part 51245 OPat i 1250 Mark for tolow up Question 16 of 75 Which comvenion is used for the year ofr disposition tor a warehouse? OMdaater aight ine Hal year Midmonth 1210 P

Answer 1

Part 13

Answer is option B

B. § 1231

The real or depreciable business property which is held for more than one year and therefore it is classified as § 1231 property

Part 14

Answer is option B

B. $25000, part II

The gain or loss on the sale of Property held for a year or less is required in the part II of 4797

Part 15

Answer is option A

A. Part I, § 1231

Office building is real or depreciable business property and was held for more than one year and therefore it is classified as § 1231 property

Part 16

Answer is Option D

D. mid-month

In mid-month conventions the one-half of a month’s depreciation is deducted by businesses in the month they sell or dispose of real property. Warehouse being real-property mid-month convention applies to it.