Questions from General Taxation

Q: Ava exchanges a land used in her business with Gail for another

Ava exchanges a land used in her business with Gail for another parcel of land. The basis of Ava’s old land is $50,000, the FMV is $66,000, and she gives Gail cash of $14,000. Gail’s basis in her land...

Q: Janel exchanges a building she uses in her rental business for a

Janel exchanges a building she uses in her rental business for a building owned by Russel that she will use in her rental business. The adjusted basis of Janel’s building is $160,000, and the FMV is $...

Q: Jason exchanged land for another lot of land. The old land

Jason exchanged land for another lot of land. The old land had an adjusted basis of $14,000, and the new land had an FMV of $22,000. Jason also paid $5,000 cash in the exchange. What are the recognize...

Q: Gretel exchanges a warehouse with an adjusted basis of $150,

Gretel exchanges a warehouse with an adjusted basis of $150,000 and an FMV of $160,000 for a mini-storage building with an FMV of $100,000 and $60,000 cash. What are the recognized gain or loss and th...

Q: What tax form is completed to elect deferral of gain on an

What tax form is completed to elect deferral of gain on an involuntary conversion? a. No form is required. b. Form 4797. c. Form 4562. d. Form 1040, Schedule D.

Q: In 2015, Chara incurred a loan to pay for qualified higher

In 2015, Chara incurred a loan to pay for qualified higher education expenses for her 20-year old daughter who was a dependent. In 2019, her granddaughter graduated from college, moved away to start a...

Q: In order to build a new road, the city of Oxford

In order to build a new road, the city of Oxford annexed 20 acres of Michael’s farmland with an FMV of $30,000 and basis of $18,000. In return, Michael received 50 acres of similar land, which was app...

Q: A warehouse with an adjusted basis of $125,000 was

A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15, 2019. On June 15, 2019, the insurance company paid the owner $195,000. The owner reinvested $170,000 in another w...

Q: A warehouse with an adjusted basis of $250,000 was

A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2019. On June 15, 2019, the insurance company paid the owner $395,000. The owner reinvested $470,000 in a new war...

Q: Kyla owns a convenience store with an adjusted basis of $215

Kyla owns a convenience store with an adjusted basis of $215,000 that was destroyed by a flood on August 15, 2019. Kyla received a check for $275,000 from her insurance company on January 10, 2020, co...