Questions from Federal Taxation

Q: Has the taxpayer in each of the following situations received taxable income

Has the taxpayer in each of the following situations received taxable income? If so, when should the income be recognized? Explain. a. Charlotte is a lawyer who specializes in drafting wills. She w...

Q: Duke Plumbing and Wallpaper Company is a corporation that has been in

Duke Plumbing and Wallpaper Company is a corporation that has been in business since 1998. During the current year, it has the following property transactions: a. A warehouse purchased in 2008 for $2...

Q: What basic tax-planning strategy should a taxpayer with a large

What basic tax-planning strategy should a taxpayer with a large net capital gain for the year pursue before the end of the year?

Q: When a gain on a property disposition is deferred, the basis

When a gain on a property disposition is deferred, the basis of the replacement property is reduced by the amount of gain deferred. Which concept supports this treatment? Explain.

Q: When a gain on a depreciable property is deferred through a nonrecognition

When a gain on a depreciable property is deferred through a nonrecognition transaction, the tax attributes of the first property carry over to the second property. Why is this important, particularly...

Q: What is boot? How does boot affect the recognition of gains

What is boot? How does boot affect the recognition of gains or losses on like-kind exchanges?

Q: Does an exchange have to occur simultaneously to qualify for nonrecognition?

Does an exchange have to occur simultaneously to qualify for nonrecognition? Explain.

Q: Define like-kind property as it applies to like-kind

Define like-kind property as it applies to like-kind exchanges, and give examples of like-kind properties and properties that are not of like kind.

Q: Why does the assumption of a mortgage when exchanging related assets constitute

Why does the assumption of a mortgage when exchanging related assets constitute boot?

Q: Discuss the restrictions placed on like-kind exchanges between related parties

Discuss the restrictions placed on like-kind exchanges between related parties. Include the reasoning behind the restriction in your discussion.