Questions from Federal Taxation

Q: In most nontaxable exchanges, is the non recognition of the realized

In most nontaxable exchanges, is the non recognition of the realized gain or loss temporary or permanent? Explain.

Q: David is a CPA and enjoys playing the lottery. This year

David is a CPA and enjoys playing the lottery. This year David won $10,000 in lottery scratch-off tickets. He spent $200 purchasing the tickets. Which statement is true regarding David's winnings? a....

Q: Barker acquired a 50% interest in Kode Partnership by contributing $

Barker acquired a 50% interest in Kode Partnership by contributing $20,000 cash and a building with an adjusted basis of $26,000 and a fair market value of $42,000. The building was subject to a $10,0...

Q: Ed receives severance damages from a state government for a public road

Ed receives severance damages from a state government for a public road built across his property. What are the tax implications of the severance damages?

Q: Reba a calendar year taxpayer, owns an office building that she

Reba a calendar year taxpayer, owns an office building that she uses in her business. The building is invo1untarily converted on November 15, 2018. On January 5, 2019, Reba receives enough proceeds to...

Q: Bob is notified by the city public housing authority on May 3

Bob is notified by the city public housing authority on May 3, 2018, that his apartment building is going to be condemned as part of an urban renewa1 project. On June 1, 2018, Carol offers to buy the...

Q: Distinguish between a loss that is not recognized on a nontaxable exchange

Distinguish between a loss that is not recognized on a nontaxable exchange and a loss that is not recognized on the sale or exchange of a personal use asset.

Q: Melissa owns a residential lot in Spring Creek, Louisiana, that

Melissa owns a residential lot in Spring Creek, Louisiana, that has appreciated substantially in value. She holds the lot for investment. She is considering exchanging the lot for a residential lot lo...

Q: Near the end of 2018 Byron realizes the has a net short

Near the end of 2018 Byron realizes the has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks...

Q: Harriet, an organic farmer, has owned depreciable farm equipment for

Harriet, an organic farmer, has owned depreciable farm equipment for several years. Is the equipment a capital asset? Why or why not?