Questions from Federal Taxation

Q: Why might a taxpayer want to avoid having an exchange qualify as

Why might a taxpayer want to avoid having an exchange qualify as a like-kind exchange?

Q: Kay owns equipment used in her business and exchanges the equipment for

Kay owns equipment used in her business and exchanges the equipment for other like-kind equipment and marketable securities. a. Will Kay’s recognized gain ever exceed the realized gain? b. Will Kay’...

Q: When does a nonsimultaneous exchange qualify as a like-kind exchange

When does a nonsimultaneous exchange qualify as a like-kind exchange?

Q: What are severance damages? What is the tax treatment for severance

What are severance damages? What is the tax treatment for severance damages received if the taxpayer does not use the severance damages to restore the retained property?

Q: John owns 25% of the ABC Partnership and Jane owns 25

John owns 25% of the ABC Partnership and Jane owns 25% of the XYZ Partnership. The ABC Partnership owns a farm and produces corn and the XYZ Partnership owns a farm and produces soybeans. John and Jan...

Q: Chauvin Oil Corporation operates primarily in the United States and owns an

Chauvin Oil Corporation operates primarily in the United States and owns an offshore drilling rig with an adjusted basis of $400,000 that it uses near Louisiana. Chauvin exchanges the rig for a new ri...

Q: The decisions of which courts are reported in the AFTR? In

The decisions of which courts are reported in the AFTR? In the USTC?

Q: Jaharta, Inc., owns land used for truck farming and cattle

Jaharta, Inc., owns land used for truck farming and cattle raising. The California Division of Highways condemned 36 acres of Jaharta’s land to build a new highway. Jaharta owned a 50% interest in pro...

Q: Mr. and Mrs. Kitchens purchased their first home in Ohio

Mr. and Mrs. Kitchens purchased their first home in Ohio for $135,000 on October 1, 2016. Because Mr. Kitchens’ employer transferred him to Utah, they sold the house for $160,000 on January 10, 2017....

Q: Which of the following exchanges qualify as like-kind exchanges under

Which of the following exchanges qualify as like-kind exchanges under Sec. 1031? a. Acme Corporation stock held for investment purposes for Mesa Corporation stock also held for investment purposes b...