REG 2 - Property Taxation

Question 1

What is the limit of the capital loss deduction for individuals?

Answer 1

$3,000

Question 2

What is the carryforward/carryback of the capital loss deduction for individuals?

Answer 2

INDEFINITE CARRY FORWARD

Question 3

What is the adjusted basis of stock given as a gift?

Answer 3

The original basis of the giver.

Question 4

What is the adjusted basis of stock given as compensation for services?

Answer 4

The fair value at the time of compensation.

Question 5

Are gains on the sale of a personal-use asset taxable as a capital gain?

Answer 5

YES

Question 6

Are losses on the sale or abandonment of a personal-use asset deductible?

Answer 6

NO

Question 7

Capital Assets include assets that are held or used for:
1. Investment
2. ____________

Answer 7

PERSONAL USE

Question 8

A nonbusiness (i.e. personal) bad debt is treated as a short-term ___________ ________ in the year it becomes totally worthless.

Answer 8

CAPITAL LOSS

Question 9

Net capital gains of Corporations are added to ____________ income and taxed at the regular tax rate.

Answer 9

ORDINARY

Question 10

Are Corporations allowed to deduct net capital losses from ordinary income?

Answer 10

NO
they can only be used to offset capital gains

Question 11

What is the carryforward/carryback for Corporate capital losses?

Answer 11

CARRY BACK 3 YEARS, CARRY FORWARD 5 YEARS

Question 12

Is a loss from a wash sale deductible?

Answer 12

NO

Question 13

The $/share of a disallowed loss from a wash sale would be _________ to the $/share cost basis of the new shares.

Answer 13

ADDED

Question 14

The loss on the disposal of business-use assets is __________. The loss on the disposal of personal-use assets is ________________.

Answer 14

DEDUCTIBLE
NONDEDUCTIBLE

Question 15

Straight-line and mid-month conventions is used for what?

Answer 15

Real Property

Question 16

How do you treat salvage value in cost recovery?

Answer 16

It is ignored

Question 17

What is the useful life of residential real property?

Answer 17

27.5 Years

Question 18

What is the useful life of non-residential real property?

Answer 18

39 Years

Question 19

MACRS (Modified Accelerated Cost Recovery) depreciation is used for what types of assets?

Answer 19

PERSONAL PROPERTY

Question 20

What is the useful life of automobiles, light trucks, computers and copiers?

Answer 20

5 years

Question 21

What is the useful life of FF&E?

Answer 21

7 years

Question 22

Personal property uses ______-__________ convention. But when more than ______% of property is placed into service in the final quarter of the taxable year, personal property uses ______-_________.

Answer 22

HALF-YEAR
40%
MID-QUARTER

Question 23

Straight-line and full-month conventions is used for what?

Answer 23

INTANGIBLE ASSETS

Question 24

What is the annual limitation under the Section 179 election to expense qualifying depreciable property (not land)?

Answer 24

$1,220,000

Question 25

What is the useful life of intangible assets?

Answer 25

180 MONTHS

Question 26

If property received as a gift is sold at a gain, what is the basis to the donee?

Answer 26

The same as it would be in the hands of the donor (rollover basis)

Question 27

If property received as a gift is sold at a loss, what is the basis to the donee?

Answer 27

The lower of the rollover basis from the donor or the FMV of the property at the date of the gift.

Question 28

If property received as a gift is sold at a loss and the sale price is in the middle of the donor's original basis and the FMV on the date of the gifted stock, what is the gain or loss?

Answer 28

ZERO/NONE

Question 29

What is the basis of property received as a gift?

Answer 29

The rollover cost basis

Question 30

What is the basis of inherited property?

Answer 30

The FMV of the property at the date of the decedent's death or alternate valuation date. (Step up in basis)

Question 31

The alternate valuation date of a decedent's estate is _____ months after the decedent's death or the earlier date of sale or distribution.

Answer 31

SIX

Question 32

What is the holding period of inherited property?

Answer 32

Always long-term

Question 33

Is personal property used in a taxpayer's trade or business a capital asset?

Answer 33

NO