Homework Answers
Ans is D
Reason:-
As per 26 CFR § 1.121-1, all of the mentioned choices can be residence. However, they must be in personal residence for a period of more than 2 years during the last 5 years till the date of sale.
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1. Which of the following could qualify as a residence, for personal residence exclusion from gain? 1. A condominiu...
1. Which of the following could qualify as a residence, for personal residence exclusion from gain?...
1. Which of the following could qualify as a residence, for personal residence exclusion from gain? 1. A condominium. 2. An RV. 3. A boat. 4. Vacant land adjacent to personal residence regularly used by the taxpayer. a. 4 only. b. 1 and 4. c. 1, 2, and 3. d. 1,2,3, and 4. 2. Philip wants to sell his rental beach home and purchase rental property in the mountains. H friend, Randy, tells him he can do a nonsimultaneous tax-free...
Which of the following is/are requirements for a married couple to exclude $500,000 of gain from...
Which of the following is/are requirements for a married couple to exclude $500,000 of gain from the sale of their residence? Only one spouse must meet the ownership requirement of two out of five years preceding the sale. Both spouses must have used the home as their principal residence in two out of five of the previous years prior to the sale date. Both spouses must have been legally married for two out of the five years immediately preceding the...
If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a second residence, he or she can exclude (up to $250,000 for a single taxpayer): A) The entire gain...
If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a second residence, he or she can exclude (up to $250,000 for a single taxpayer): A) The entire gain on the second sale if the sale is due to health, employment reasons or unforeseen circumstances. B) The entire gain for any reason. C) A ratio of the days owned divided by 730 days and only if the sale is due to health,...
Fred used a portion of his residence, which she bought 15 years ago , for business...
Fred used a portion of his residence, which she bought 15 years ago , for business purposes. He has taken depreciation deduction since he bought the home . When he sells his home in May 2019 , his gain is $150,000, $5,000 of which is attributable to depreciation . Which of the following is true ? a.). A total of 5000 of his gain does not qualify for the home sale exclusion B.). The basis in his new home must...
. Which of the following are deductions for AGI? a. Mortgage interest on a personal residence....
. Which of the following are deductions for AGI? a. Mortgage interest on a personal residence. b. Property taxes on a personal residence. c. Mortgage interest on a building used in a business. d. Fines and penalties incurred in a trade or business. e. None of these.
which of the following does NOT qualify for combat pay exclusion? a active duty in a...
which of the following does NOT qualify for combat pay exclusion? a active duty in a combat zone b reenlistment bonus while in a combat zone c student loan repayment in a combat zone d retirement pay and pensions
Why is the gain on the sale of a houseboat which is used for personal purposed...
Why is the gain on the
sale of a houseboat which is used for personal purposed taxes at a
capital gains rate and not an ordinary rate?
Discussion Question 3-18 (LO. 8) During the year, Hernando has the following transactions: a. Gain on the sale of stock held as an investment for 10 months. b. Gain on the sale of land held as an investment for 4 years. C. Gain on the sale of a houseboat owned for 2 years...
In which of the following scenarios would the taxpayer NOT be likely to benefit from an...
In which of the following scenarios would the taxpayer NOT be likely to benefit from an installment sale? A taxpayer who sold: a. Investment -use land for a gain b. Their main home at a gain that exceeds their allowable exclusion c. A business use machine at a gain that is more than the depreciation allowed or allowable d. a business-use care at a gain that is less than the amount of depreciation allowed
Question 1 Which of the following is true concerning Crummey powers. Allows a gift to qualify...
Question 1 Which of the following is true concerning Crummey powers. Allows a gift to qualify for the annual exclusion. Typically found within revocable trusts. Is a provision found within an irrevocable life insurance trust. Question 1 options: A - I and II B - II only C - I and III D - III only Question 2 Which of the following is not true with respect to a net gift? A - The gross amount of the gift is...
Which of the following results in a recognized gain or loss? - Kelly sells her vacation...
Which of the following results in a recognized gain or loss? - Kelly sells her vacation cabin (adjusted basis $100,000) forr $150,000. - Adam sells his personal residence (adjusted basis $150,000) for $100,000. -Carl's personal residence (adjusted basis $65,000) is condemned by the city. He receives condemnation proceeds of $55,000. - Olga's land is worth $40,000 at the end of the year. She had purchased the land six months earlier for $25,000. - Vera's personal car (adjusted basis $22,000) is...
1. Which of the following could qualify as a residence, for personal residence exclusion from gain? 1. A condominium. 2. An RV. 3. A boat. 4. Vacant land adjacent to personal residence regularly used by the taxpayer. a. 4 only. b. 1 and 4. c. 1, 2, and 3. d. 1,2,3, and 4. 2. Philip wants to sell his rental beach home and purchase rental property in the mountains. H friend, Randy, tells him he can do a nonsimultaneous tax-free...
. Which of the following are deductions for AGI? a. Mortgage interest on a personal residence. b. Property taxes on a personal residence. c. Mortgage interest on a building used in a business. d. Fines and penalties incurred in a trade or business. e. None of these.
Why is the gain on the
sale of a houseboat which is used for personal purposed taxes at a
capital gains rate and not an ordinary rate?
Discussion Question 3-18 (LO. 8) During the year, Hernando has the following transactions: a. Gain on the sale of stock held as an investment for 10 months. b. Gain on the sale of land held as an investment for 4 years. C. Gain on the sale of a houseboat owned for 2 years...
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