Practice

Question 1

Intrinsic Value of Call = Stock Price - Strike Price

Question 2

When does the holding period of property that was acquired by gift may begin on?

Answer 2

1. The date the property was acquired by the donor or
2. the date of the gift.

Question 3

What does claiming Section 179 expense do to the basis of property?

Answer 3

Claiming Section 179 expense immediately reduces the basis of the property by whatever the amount claimed (not to exceed original cost).

The amount of deduction is limited in total and further subject to income limitation before the deduction is taken.