Questions from General Taxation

Q: All of the following statements regarding the definition of basis other than

All of the following statements regarding the definition of basis other than cost are true except a. The basis for assets received as a gift depends on whether the FMV is greater than, equal to, or l...

Q: All of the following expenses increase the basis of stock held for

All of the following expenses increase the basis of stock held for investment except a. Commission fees on the purchase of the stock. b. Stock splits. c. Stock dividends from a dividend reinvestment...

Q: In 2014, Grant purchased land for $103,000 for

In 2014, Grant purchased land for $103,000 for use in his business. He sold it in 2017 for $114,000. What are the amount and type of gain on this sale, before netting of any other gains and/or losse...

Q: On May 20, 2016, Jessica purchased land for $105

On May 20, 2016, Jessica purchased land for $105,647 to use in her business. She sold it on May 21, 2017 for $102,595. What are the amount and type of loss on this sale if Jessica does not have any o...

Q: Medhat and Neveen, married filing jointly, have $390,

Medhat and Neveen, married filing jointly, have $390,000 in MAGI and $86,000 of net investment income (NII). They will pay a surtax of: a. $0. b. $2,052. c. $2,580. d. $3,268.

Q: In 2005, Duncan purchased 2,000 shares of stock for

In 2005, Duncan purchased 2,000 shares of stock for $50,000 in a midsize local company with gross assets of $15,000,000. In 2017, Duncan sold the stock for $68,000. How is the gain treated for tax p...

Q: Blair sold the following stocks in 2017: 200 shares of Dearborn

Blair sold the following stocks in 2017: 200 shares of Dearborn Investments purchased May 15, 2016, for $3,050 and sold on January 9, 2017 for $4,135; and 40 shares of State Street Investments, purcha...

Q: Which statement is true regarding short-term capital gains?

Which statement is true regarding short-term capital gains? a. If there are a net short-term gain and a net long-term gain, both gains are taxed at regular rates. b. A long-term loss offsets a short-...

Q: On August 1 of the current year, Jennifer and Tyler purchased

On August 1 of the current year, Jennifer and Tyler purchased a cabin for $950,000. Of that amount, $500,000 was for the land. How much depreciation deduction can Jennifer and Tyler take in the curr...

Q: Nicolette and Brady own a cabin in Lake Arrowhead, California that

Nicolette and Brady own a cabin in Lake Arrowhead, California that they rent out during the winter and use the rest of the year. The rental property is categorized as personal/rental property, and th...