Income Tax Flashcards
(4 cards)
1
Q
What is the step-up percentage of property if jointly owned and live in a community property state if one spouse dies?
A
100% Step-up to the Fair Market Value (FMV)
2
Q
What are the Section 1244 Stock Loss Provisions/Tax Treatment?
A
Married Filing Jointly: Up to $100,000 of loss is treated as an ordinary loss
All Other Filing: Up to $50,000 of loss is treated as ordinary loss
Any loss in excess of maximum ordinary loss is treaded as a capital loss
3
Q
If there is a realized gain but not a recognized gain from the same sale, does a tax form need to be filed?
A
No return needs to be filed because there is no recognized gain
4
Q
What are the three Boot Rules?
A
- Boot Received is Recognized Gain
- Boot Paid Adds to Basis
- Carryover basis from last property
3a. New Basis = Old Basis + Boot Paid
