Questions from Federal Taxation

Q: Why is it unlikely that gains due to the sale of equipment

Why is it unlikely that gains due to the sale of equipment will be treated as Sec. 1231 gains?

Q: Jackie purchases equipment during the current year for $800,000

Jackie purchases equipment during the current year for $800,000 that has a seven-year MACRS recovery period. She expects to sell the property after three years. Jackie anticipates that her marginal ta...

Q: Under what circumstances might a tax advisor find the provisions of a

Under what circumstances might a tax advisor find the provisions of a tax treaty useful?

Q: Will an individual taxpayer ever have to recognize Sec. 1250 ordinary

Will an individual taxpayer ever have to recognize Sec. 1250 ordinary income on the sale of a building used for business and placed in service after 1986? Explain.

Q: John and Karen are unrelated individuals. John sold land that is

John and Karen are unrelated individuals. John sold land that is Sec. 1231 property held for three years and recognized a $50,000 gain. Karen sold a building that is Sec. 1231 property held for three...

Q: Why may a corporation recognize a greater amount of ordinary income due

Why may a corporation recognize a greater amount of ordinary income due to the sale of Sec. 1250 property than a noncorporate taxpayer?

Q: Dale owns business equipment with a $100,000 FMV and

Dale owns business equipment with a $100,000 FMV and an adjusted basis of $60,000. The property was originally acquired for $150,000. Which one of the following transactions would result in recognitio...

Q: Six years ago Joelle started raising chinchillas. She separates her chinchillas

Six years ago Joelle started raising chinchillas. She separates her chinchillas into two groups, a breeding group and a market group. During the year, she had the following sales of chinchillas from h...

Q: Green Acres, Inc., owns 1,400 acres adjacent to

Green Acres, Inc., owns 1,400 acres adjacent to land owned by the U.S. government. The government, wanting to sell timber from its land, had to assure prospective bidders of access to the timber. The...

Q: Sarah, who has been in the business of erecting, maintaining

Sarah, who has been in the business of erecting, maintaining, and renting outdoor advertising displays for 18 years, has an offer to purchase her business. Two basic types of advertising displays are...