Homework Answers
Solution. 10. The given statement is True.
Explanation: To qualify for preferential capital gain tax rate, an asset must be held for more than 12 months as the holding period.
11. The given statement is False.
Explanation: If a real estate property is acquired subject to lease, no portion of the adjusted tax basis will be allocated to the value of the leasehold interest acquired according to IRS guidelines.
12. The given statement is False.
Explanation: Under section 1031 exchange, simultaneous exchange should occur between the taxpayer acquiring the new like kind property and selling off the relinquished property in order to ignore wiring money to the escrow company.
13. The given statement is True.
Explanation: A transaction is treated as a nontaxable under section 1031 exchange is that the property must be held for investment, for productive use in trade or business or as dealer property held for sale to customers in the ordinary course of trade or business.
14. The given statement is True.
Explanation: Cost of real estate between land, building and each item of personal property is generally based on the relative fair market value of each asset acquired.
15. The given statement is True.
Explanation: IRS provides lower tax rate on long term capital gains only if the property is held for longer than 12 months.
16. The given statement is False.
Explanation: Capital gain income is excluded while calculating qualified business income.
17. The given statement is True.
Explanation: IRS set regulation allows a transaction as like-kind exchange when there is direct sell and acquisition of new property is done without an intermediary presence to ignore paying capital gains taxes.
18. The given statement is False.
Explanation: To qualify as like-kind exchange it must encompass usage for business or as an investment.
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10. (Tor F) The holding period describes the length of time that an asset is held....
In an exchange Archie gave up his fully depreciated business use dump truck (DMV 15,000) and...
In an exchange Archie gave up his fully depreciated
business use dump truck (DMV 15,000) and 5000 for a newer business
use dump truck (DMV 20,000) The exchange was completed on January
12, 2018. Which of the following statements is TRUE In regard to
Archies exchange of business property?
1) Archie will not be 5defer a gain on his ex
The arrest lose the prod The next future yestos Last years and ending with from the h o use Mark...
Question 20 of 75. Which of the following statements is correct with regard to unrecaptured $1250...
Question 20 of 75. Which of the following statements is correct with regard to unrecaptured $1250 gain? Unrecaptured 51256 gain is: Taxed at 28% capital gains tax rate or the taxpayer's lower tax rate applicable Taxed at 25% capital gains tax rate or the taxpayer's lower tax rate, if applicable O Taxed at 18% capital gains tax rate or the taxpayer's lower tax rate, if applicable Taxed at O capital gains tax rate or the taxpayer's lower tax rate. If...
Pam and Joe each own 50% of Tucson LLC a limited liability company located in Tucson,...
Pam and Joe each own 50% of Tucson LLC a limited liability company located in Tucson, AZ which was created in April of 2019. Tucson LLC provides veterinary services and uses the cash method of accounting. Pam and Joe have come to you on December 30, 2019 to ask your advice on some transactions they are considering. Tucson's financial information is provided below: Profit and Loss Statement January 1, 2019-December 30, 2019: Gross Receipts: Veterinary Services $675,000 Expenses: Salaries $400,000...
Achoices: Total tax liability owed, Adjusted gross income (AGI), Gross income (all income subject to income...
Achoices: Total tax liability owed, Adjusted gross income (AGI),
Gross income (all income subject to income taxes]
Bchoices: Total personal exemptions, (AGI), Adjustments to
(gross) income
Cchoices: Total tax liability owed, Itemized deductions,
(AGI)
Dchoices: Taxable income Total personal exemptions Total tax
liability owed
E: Taxable income (AGI) Other taxes
F: Other taxes Total personal exemptions Tax credits
G: Tax credits Other credits Tax liability owed
H: Taxable income Total tax liability owed Adjestments to
(gross) income
Ch 03: Assignment...
The Commissioner of Internal Revenue ("Commissioner") appeals the Tax Court's decision that he abused his discretion...
The Commissioner of Internal Revenue ("Commissioner") appeals the Tax Court's decision that he abused his discretion in requiring Jim Turin & Sons, Inc. ("taxpayer"), to use the accrual method of accounting to compute its federal taxes for the tax years at issue. In particular, the Commissioner contests the Tax Court's finding that emulsified asphalt is not "merchandise," as that term is used in 26 C.F.R.S 1.471-1. The Tax Court had jurisdiction pursuant to 26 U.S.C.SS 6213, 6214, and 7442. We...
The Commissioner of Internal Revenue ("Commissioner") appeals the Tax Court's decision that he abused his discretion...
The Commissioner of Internal Revenue ("Commissioner") appeals the Tax Court's decision that he abused his discretion in requiring Jim Turin & Sons, Inc. ("taxpayer"), to use the accrual method of accounting to compute its federal taxes for the tax years at issue. In particular, the Commissioner contests the Tax Court's finding that emulsified asphalt is not "merchandise," as that term is used in 26 C.F.R.S 1.471-1. The Tax Court had jurisdiction pursuant to 26 U.S.C.SS 6213, 6214, and 7442. We...
Tax return
Complete Anytime Plumbing, LLC’s 2019 partnership tax return (Form 1065 and one Schedule K-1, as they are the same) based upon the facts presented. Ignore all AMT calculations and AMT related reporting items.If any information is missing, use reasonable assumptions to fill in the gaps.Schedule k1.pdf2019 Form 1065.pdfCompany InformationFrankie Jones and Wayne Brown decided to form a plumbing company, available 24 hours a day, seven days a week, called Anytime Plumbing, LLC (AP). AP finds itself often as one of the only available...
It is based on the multiple-choice question pasted below. Use the current 21 percent tax rate....
It is based on the multiple-choice question pasted below. Use the current 21 percent tax rate. (28) in the current year, Acom, Inc., had the following items of income and expense! Sales $500,000 Cost of sales 250,000 Dividends received 25,000 The dividends were received from a corporation of which Acom owns 30%. In Acom's current yoar income tax rotum, what amount should be reported as income before special deductions? A. $525.000 B. $508,750 C. $275,000 D. $250.000 The correct answer...
23. What is the total net amount of capital gain reported on Form 1040? OA. $308...
23. What is the total net amount of capital gain reported on
Form 1040? OA. $308 OB. $2,411 C. $2,719 OD. $2,900
Advanced Scenario 7: Mark and Barbara Matthews Directions Using the tax software, complete the tax return, including Form 1040 and all appropri- ate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice....
Please read the article and answer about questions. You and the Law Business and law are...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...
In an exchange Archie gave up his fully depreciated
business use dump truck (DMV 15,000) and 5000 for a newer business
use dump truck (DMV 20,000) The exchange was completed on January
12, 2018. Which of the following statements is TRUE In regard to
Archies exchange of business property?
1) Archie will not be 5defer a gain on his ex
The arrest lose the prod The next future yestos Last years and ending with from the h o use Mark...
Question 20 of 75. Which of the following statements is correct with regard to unrecaptured $1250 gain? Unrecaptured 51256 gain is: Taxed at 28% capital gains tax rate or the taxpayer's lower tax rate applicable Taxed at 25% capital gains tax rate or the taxpayer's lower tax rate, if applicable O Taxed at 18% capital gains tax rate or the taxpayer's lower tax rate, if applicable Taxed at O capital gains tax rate or the taxpayer's lower tax rate. If...
Achoices: Total tax liability owed, Adjusted gross income (AGI),
Gross income (all income subject to income taxes]
Bchoices: Total personal exemptions, (AGI), Adjustments to
(gross) income
Cchoices: Total tax liability owed, Itemized deductions,
(AGI)
Dchoices: Taxable income Total personal exemptions Total tax
liability owed
E: Taxable income (AGI) Other taxes
F: Other taxes Total personal exemptions Tax credits
G: Tax credits Other credits Tax liability owed
H: Taxable income Total tax liability owed Adjestments to
(gross) income
Ch 03: Assignment...
It is based on the multiple-choice question pasted below. Use the current 21 percent tax rate. (28) in the current year, Acom, Inc., had the following items of income and expense! Sales $500,000 Cost of sales 250,000 Dividends received 25,000 The dividends were received from a corporation of which Acom owns 30%. In Acom's current yoar income tax rotum, what amount should be reported as income before special deductions? A. $525.000 B. $508,750 C. $275,000 D. $250.000 The correct answer...
23. What is the total net amount of capital gain reported on
Form 1040? OA. $308 OB. $2,411 C. $2,719 OD. $2,900
Advanced Scenario 7: Mark and Barbara Matthews Directions Using the tax software, complete the tax return, including Form 1040 and all appropri- ate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice....
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