Property Dispositions questions and problems

May 12th, 2015
Studypool Tutor
Price: $10 USD

Tutor description

In a sale of property, the amount realized consists of cash or a cash equivalent (purchaser’s note). In an exchange of property, the amount realized includes non cash assets. If a taxpayer is relieved of a debt on the disposition of an asset (i.e., the purchaser assumes the seller’s debt), the relief of debt is an amount realized. If the taxpayer receives services in exchange for the asset, the fair market value of the services is an amount realized.

Word Count: 3318
Showing Page: 1/36
Chapter 8Chapter 8 - Property DispositionsChapter8QuestionsandProblemsforDiscussion1.a. Section1231asset.b. Capitalasset.c.Section1231asset.d. Capitalasset.e. Noncapitalasset.f.Capitalasset.g. Capitalasset.h. Section1231asset.2.Inasaleofproperty,theamountrealizedconsistsofcashoracashequivalent(purchasers note).Inanexchangeofproperty,theamountrealizedincludesnoncashassets.3.Ifataxpayerisrelievedofadebtonthedispositionofanasset(i.e.,thepurchaserassumesthe sellersdebt),thereliefofdebtisanamountrealized.Ifthetaxpayerreceivesservicesin exchangefortheasset,thefairmarketvalueoftheservicesisanamountrealized.4.Ifataxpayerhaslossesthatcouldbedeductedagainstgainrecognizedonaninstallmentsale, thetaxpayermightelectoutoftheinstallmentsalemethod.Alternatively,ifthetaxpayers marginalrateintheyearofsaleisconsiderablylowerthantheprojectedmarginalrateinfuture years,thetaxpayermightprefertorecognizetheentiregainintheyearofsale.5.Thecharacterizationofgainorlossfortaxpurposeshasnoeffectonthecomputationofnet incomeperbooks.6.Afirmstaxbasisinanassetincludesanyportionoftheas

Review from student

Studypool Student
" This tutor is great! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors