Questions from Taxation

Q: Firm F’s adjusted basis in operating asset A is $75,

Firm F’s adjusted basis in operating asset A is $75,000. If the firm carries $75,000 of property insurance on this asset, is it adequately protected against risk of loss?

Q: For tax purposes, what is the difference between a sale of

For tax purposes, what is the difference between a sale of property and an exchange of property?

Q: Does the characterization of gain or loss as either ordinary or capital

Does the characterization of gain or loss as either ordinary or capital have any effect on the computation of net income per books?

Q: Why doesn’t Congress extend the wash sale rule to apply to realized

Why doesn’t Congress extend the wash sale rule to apply to realized gains?

Q: Suber Inc., a calendar year taxpayer, purchased equipment for $

Suber Inc., a calendar year taxpayer, purchased equipment for $800,000 and placed it in service on March 1. Suber’s chief engineer determined that the equipment had an estimated useful life of 120 mon...

Q: In what circumstance is the before-tax cost of an expenditure

In what circumstance is the before-tax cost of an expenditure equal to its after-tax cost?

Q: This year, Firm B recognized a $100,000 capital

This year, Firm B recognized a $100,000 capital gain on the sale of investment land. Toward the end of the year, the firm plans to sell stock from its investment portfolio to generate a $100,000 capit...

Q: Why is the label “nontaxable exchange” a misnomer?

Why is the label “nontaxable exchange” a misnomer?

Q: In a nontaxable exchange between unrelated parties, are the amounts realized

In a nontaxable exchange between unrelated parties, are the amounts realized by the parties always equal?

Q: In a nontaxable exchange, do the tax consequences to one party

In a nontaxable exchange, do the tax consequences to one party in any way depend on the tax consequences to the other party?