Questions from General Taxation

Q: What are the policy reasons for allowing a portion of the gain

What are the policy reasons for allowing a portion of the gain on a personal residence to escape taxation?

Q: Beth had been using an automobile for personal purposes. In year

Beth had been using an automobile for personal purposes. In year 2, when she started a business, she began to use the car exclusively for this business at a time when it was worth $12,000. She had pur...

Q: Mary had the following transactions involving BMN stock: /

Mary had the following transactions involving BMN stock: a. Determine Mary’s gain or loss on each sale, assuming the shares are not specifically identified. b. Determine Maryâ...

Q: Why do you think the specifications for like-kind properties are

Why do you think the specifications for like-kind properties are so different for real property and for personalty?

Q: What is a possible reason for allowing persons to use the provision

What is a possible reason for allowing persons to use the provision that allows the deferral of gain or loss for involuntary conversions on property that is sold under the threat of condemnation only?...

Q: What is the rationale behind a corporation’s increasing its basis in property

What is the rationale behind a corporation’s increasing its basis in property received in a Section 351 transaction for the gain recognized by the transferor shareholder?

Q: What is Section 291 recapture? Compare this to unrecaptured Section 1250

What is Section 291 recapture? Compare this to unrecaptured Section 1250 gains.

Q: A shareholder receives stock valued at $500,000 and $

A shareholder receives stock valued at $500,000 and $50,000 cash for two pieces of equipment as part of a Section 351 transaction. He transfers (1) Machine A with a fair market value of $330,000 and a...

Q: What policy reason do you think explains why losses on the personal

What policy reason do you think explains why losses on the personal-use property of individuals are nondeductible except for a limited amount of loss from involuntary conversions?

Q: Waltjohn Corporation has $5,000 in CE&P and

Waltjohn Corporation has $5,000 in CE&P and $10,000 in AE&P. It has two shareholders, Walter and John. On April 1 of the current year, Walter received a $10,000 distribution from the corporation on hi...