Questions from General Taxation

Q: Delta Airlines trades two of its short-range jets to one

Delta Airlines trades two of its short-range jets to one of its regional commuter partners for a newer medium-range jet. Delta’s jets have a fair market value of $4,000,000 and a basis of $2,250,000....

Q: Lab Kennels, Inc. and Wolman Developers agree to exchange two

Lab Kennels, Inc. and Wolman Developers agree to exchange two parcels of land and each assume the other’s mortgage on the parcel acquired. Lab owns 500 acres within city limits that has a value of $75...

Q: DDD Corporation agrees to exchange $50,000 and some raw

DDD Corporation agrees to exchange $50,000 and some raw land for a building owned by Jason Briggs. DDD Corporation’s land has a value of $600,000, a basis of $200,000 and is encumbered by a $200,000 m...

Q: The Clover Corporation wants to exchange land held for expansion for a

The Clover Corporation wants to exchange land held for expansion for a building that will provide additional office space to avoid gain recognition. The land has a value of $1,200,000 and a basis of $...

Q: Bently Corporation wants to dispose of a warehouse valued at $800

Bently Corporation wants to dispose of a warehouse valued at $800,000 but with a basis of only $300,000. It has two replacement alternatives. Bently can purchase a replacement warehouse for $800,000 o...

Q: A tornado destroyed part of the offices of Heywood Corporation. The

A tornado destroyed part of the offices of Heywood Corporation. The building had a fair market value of $500,000 before and $200,000 after the tornado. The basis of the building is $320,000. a. What...

Q: Jewel’s home was completely destroyed by fire in 2017. The building

Jewel’s home was completely destroyed by fire in 2017. The building had an appraised value of $185,000 before the fire. Four years ago Jewel paid $160,000 for the house and the land, with $25,000 of t...

Q: How are net capital losses of individuals treated for tax purposes?

How are net capital losses of individuals treated for tax purposes? How are net capital losses of corporations treated for tax purposes?

Q: Danny’s living room furniture and his flat screen television were damaged in

Danny’s living room furniture and his flat screen television were damaged in a fire in his home in January 2017. In March 2017, his golf cart was damaged in a flood. He was able to e...

Q: Clayton Corporation owns business realty that the county condemns on July 15

Clayton Corporation owns business realty that the county condemns on July 15, year 1. The county pays Clayton $400,000 for the property that has an allocated basis of $235,000. a. What are Clayton’s...