IRC 1244 allows for what ? A. No recognition on a like-kind exchange B. Deductibility of...
Homework Answers
The correct answer is C because, Code 1244
allows losses from sale of stock in small, domestic corps to be
deducted as ordinary losses instead of capital losses to a max of
$50K for an individual.
Losses in excess of $50K are capital losses
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IRC
1244 allows for what ?
A. No recognition on a like-kind exchange
B. Deductibility of...
Which is true of the provisions of IRC 351? A. It allows for ordinary loss treatment...
Which is true of the provisions of IRC 351? A. It allows for ordinary loss treatment B. It applies to transfer of property for stock and debt instruments C. It encourages corporate formation D. Taxpayers must make an election to qualify under IRC 351
Investors often use the like-kind exchange provisions in the tax code to defer recognition of gains...
Investors often use the like-kind exchange provisions in the tax code to defer recognition of gains when they want to dispose of an asset. These are complicated transactions which has lead to a small industry being created just to meet the requirements of the provisions. Unfortunately, there are two requirements of like-kind exchanges which are often messed up. If messed up, these result in nullifying all or part of the exchange benefit. (a) What are the requirements for like-kind exchange...
Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000...
Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000 to Monarch Corporation in exchange for shares of 5 1244 stock. Assume that the transfer qualifies under 5 351. a. What is the basis of the stock to Gigi? (Gigi and Monarch do not make an election to reduce her stock basis.) The basis of the stock to Gigi is $ 60,000 In an exception to the capital treatment that generally results. 1244 permits...
What is a like-kind exchange? What types of assets are eligible for like-kind exchange treatment?
What is a like-kind exchange? What types of assets are eligible for like-kind exchange treatment?
[2] During the current year, Mrs. Venture sold her interests in two small business corporations (Sec....
[2] During the current year, Mrs. Venture sold her interests in two small business corporations (Sec. 1244). Her loss on Corporation X stock was $120,000, and her loss on Corporation Y stock was $20,000. Mrs. Venture files jointly with her husband. What are the amount and the character of Mrs. Venture's loss to be reported on their joint return for the current year? A. $140,000 ordinary; $0 capital. B. $100,000 ordinary; $40,000 capital. C. $40,000 ordinary; $100,000 capital. D. $0...
15, Which is true of like-kind exchange treatment? A. It applies only to real property B.It...
15, Which is true of like-kind exchange treatment? A. It applies only to real property B.It applies only to business or Investment property. C. Sole proprietor's income from business activity C. Losses are never recognized. D.Guaranteed payment to limited partner
I would like to know how you get the answer. 6. When Pheasant Corporation was formed...
I would like to know how you get the answer.
6. When Pheasant Corporation was formed under s 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for § 1244 stock. Kristen's basis in the Pheasant stockis S26 000. Three y ears later, Pheasant Corporation goes bankrupt and its stock becomes worthless. Kristen, who is single, owned the stock as an investment. Kristen's loss is: a. $26,000 capital. b. $22,500 ordinary and $3,500 capital. c. $3,500...
24 which of the following doesnt qualify as like kind property for 1031 exchange a office...
24 which of the following doesnt qualify as like kind property for 1031 exchange a office building for raw land' b IBM stock for google stock c rental apartment building for commercial farm land d single family rental real estate for the trump tower building e all above qualify
question 1 through 4 multiple choice 1. Which of the follow She following statements concerning the...
question 1 through 4 multiple choice
1. Which of the follow She following statements concerning the taxation of assets is correct? Ordinary income may qualify for a special 0% rate. Capital gains are always taxed at the taxpayers marginal tax rate. Section 1231 assets are taxed at ordinary rates, and losses are taxed at capital rates. Gains on Section 1231 assets are taxed at long-term capital gains tax rates, and losses are taxed at ordinary income tax rates. Which of...
E. Can have any ju 4. The following does NOT qualify as "like kind" property for...
E. Can have any ju 4. The following does NOT qualify as "like kind" property for a $1031 exchange. A. Office building for raw land. B. IBM stock for Google stock C. Rental apartment building for commercial farm land D. Single family rental real estate for the Trump Tower building E. All of the above qualify as "like kind" property for a $1031 exchange
Problem 4-49 (0.6) Gigi transfers real estate (basis of $60,000 and fair market value of $40,000 to Monarch Corporation in exchange for shares of 5 1244 stock. Assume that the transfer qualifies under 5 351. a. What is the basis of the stock to Gigi? (Gigi and Monarch do not make an election to reduce her stock basis.) The basis of the stock to Gigi is $ 60,000 In an exception to the capital treatment that generally results. 1244 permits...
What is a like-kind exchange? What types of assets are eligible for like-kind exchange treatment?
[2] During the current year, Mrs. Venture sold her interests in two small business corporations (Sec. 1244). Her loss on Corporation X stock was $120,000, and her loss on Corporation Y stock was $20,000. Mrs. Venture files jointly with her husband. What are the amount and the character of Mrs. Venture's loss to be reported on their joint return for the current year? A. $140,000 ordinary; $0 capital. B. $100,000 ordinary; $40,000 capital. C. $40,000 ordinary; $100,000 capital. D. $0...
I would like to know how you get the answer.
6. When Pheasant Corporation was formed under s 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for § 1244 stock. Kristen's basis in the Pheasant stockis S26 000. Three y ears later, Pheasant Corporation goes bankrupt and its stock becomes worthless. Kristen, who is single, owned the stock as an investment. Kristen's loss is: a. $26,000 capital. b. $22,500 ordinary and $3,500 capital. c. $3,500...
question 1 through 4 multiple choice
1. Which of the follow She following statements concerning the taxation of assets is correct? Ordinary income may qualify for a special 0% rate. Capital gains are always taxed at the taxpayers marginal tax rate. Section 1231 assets are taxed at ordinary rates, and losses are taxed at capital rates. Gains on Section 1231 assets are taxed at long-term capital gains tax rates, and losses are taxed at ordinary income tax rates. Which of...
E. Can have any ju 4. The following does NOT qualify as "like kind" property for a $1031 exchange. A. Office building for raw land. B. IBM stock for Google stock C. Rental apartment building for commercial farm land D. Single family rental real estate for the Trump Tower building E. All of the above qualify as "like kind" property for a $1031 exchange
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