Questions from General Taxation

Q: Tulip, Inc., would like to dispose of some land it

Tulip, Inc., would like to dispose of some land it acquired four years ago because the land will not continue to appreciate. Its value has increased by $50,000 over the four-year period. The company a...

Q: What is the basis of the new property in each of the

What is the basis of the new property in each of the following exchanges? a. Apartment building held for investment (adjusted basis of $145,000) for office building to be held for investment (fair ma...

Q: Rose Company owns Machine A (adjusted basis of $12,

Rose Company owns Machine A (adjusted basis of $12,000 and fair market value of $15,000), which it uses in its business. Rose sells Machine A for $15,000 to Aubry (a dealer) and then purchases Machine...

Q: Cardinal Properties, Inc., exchanges real estate used in its business

Cardinal Properties, Inc., exchanges real estate used in its business along with stock for real estate to be held for investment. The stock transferred has an adjusted basis of $45,000 and a fair mark...

Q: Tom and Frank are brothers. Each owns investment property in the

Tom and Frank are brothers. Each owns investment property in the other’s hometown. To make their lives easier, they decide to legally exchange the investment properties. Under the terms of the exchang...

Q: Determine the realized, recognized, and postponed gain or loss and

Determine the realized, recognized, and postponed gain or loss and the new basis for each of the following like-kind exchanges:

Q: Turquoise Realty Company owns an apartment house that has an adjusted ba

Turquoise Realty Company owns an apartment house that has an adjusted ba- sis of $760,000 but is subject to a mortgage of $192,000. Turquoise transfers the apartment house to Dove, Inc., and receives...

Q: Determine Hazel’s Federal gross income from the following receipts for the year

Determine Hazel’s Federal gross income from the following receipts for the year. Gain on sale of Augusta County bonds ……………………. $800 Interest on U.S. government savings bonds ………………. 400 Interest on...

Q: Randall owns an office building (adjusted basis of $250

Randall owns an office building (adjusted basis of $250,000) that he has been renting to a group of physicians. During negotiations over a new seven-year lease, the physicians offer to purchase the b...

Q: Howard’s roadside vegetable stand (adjusted basis of $275,000

Howard’s roadside vegetable stand (adjusted basis of $275,000) is destroyed by a tractor-trailer accident. He receives insurance proceeds of $240,000 ($300,000 fair market value – $60,000 coinsurance)...