Brandon, an individual, began business four years ago and has sold §1231 assets with $6,000 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Accumulated Cost Depreciation Gain/Loss $ 10,000 20,000 (5,000) Asset Machinery $ 30,000 $ 7,000 Land 40,000 0 Building 90,000 20,000 Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Which of the following is true regarding the §1231 look-back rule? Which one of the following is not a requirement of a deferred like-kind exchange? Which of the following is not an involuntary conversion?

Brandon, an individual, began business four years ago and has sold §1231 assets with $6,000 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Accumulated Cost Depreciation Gain/Loss $ 10,000 20,000 (5,000) Asset Machinery $ 30,000 $ 7,000 Land 40,000 0 Building 90,000 20,000 Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Which of the following is true regarding the §1231 look-back rule? Which one of the following is not a requirement of a deferred like-kind exchange? Which of the following is not an involuntary conversion?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter17: Property Transactions: § 1231 And Recapture Provisions

Section: Chapter Questions

Problem 37P

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Brandon, an individual, began business four years ago and has sold §1231 assets with $5,550 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Asset Original Cost Accumulated Depreciation Gain/Loss Machinery $ 31,100 $ 8,100 $ 10,550 Land 51,000 0 25,500 Building 112,000 31,000 (16,000 ) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and capital gains tax rates for reference.
Brandon, an individual, began business four years ago and has sold $1231 assets with $5.400 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Accumulated Depreciation $ 7,800 Asset Cost Gain/Loss Machinery $ 30,800 $10,400 Land 48,000 24,000 Building 106,000 28,000 (13, ее0) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use Dividends and Capital Gains Tax Rates for reference. Multiple Choice $21,400 ordinary income, $6,848 tax liability. $21,400 $1231 gain and $3,210 tax liability. $8,200 51231 gain, $13,200 ordinary income, and $5,454 tax liability. $13,200 61231 gain, $8,200 ordinary income, and $4.604 tax liability
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Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Original Accumulated Depreciation $ 2,000 4,000 12,000 10,000 Asset Cost Gain/Loss $ 6,000 10,000 20,000 100,000 $ (3,000) (2,000) 7,000 (1,000) Computers Machinery Furniture Building Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: b1. Assume that the amount realized increased so that the building was sold at a $6,000 gain instead. What is the amount and character of Buckley's gains or losses for the current year? b2. Calculate Buckley's tax liability or tax savings for the year. Complete this question by entering your answers in the tabs below. Req b1 Req b2 Calculate Buckley's tax liability or tax savings for the year.
Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Original Accumulated Depreciation $ 2,000 4,000 12,000 10,000 Asset Cost Gain/Loss $ 6,000 10,000 20,000 100,000 $ (3,000) (2,000) 7,000 (1,000) Computers Machinery Furniture Building Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: c1. Assume that the amount realized increased so that the building was sold at a $15,000 gain instead. What is the amount and character of Buckley's gains or losses for the current year? c2. Calculate Buckley's tax liability or tax savings for the year. Complete this question by entering your answers in the tabs below. Show less A Req c1 Req c2 Calculate Buckley's tax liability or tax savings for the year.
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Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Original Accumulated Gain/Loss Depreciation $ 2,000 4,000 12,000 10,000 Asset Cost Computers Machinery Furniture $ 6,000 10,000 20,000 100,000 $ (3,000) (2,000) 7,000 (1,000) Building Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: a1. What is the amount and character of Buckley's gains or losses for the current year? a2. Calculate Buckley's tax liability or tax savings for the year. Complete this question by entering your answers in the tabs below. Req al Req a2 Calculate Buckley's tax liability or tax savings for the year.
During the current year, Jean and Steve sold the following assets and made the following gains and losses. Capital asset. Capital gain/loss. Type A stock. $35,000. long 0/15/20% B stock. (8,000). short Antiques. 5,000. long 28% Rental home. 100,000. long 25% and 0/15/20% *40,000 of the gain is 25 percent gain from accumulated depreciation on the property. i)Complete the capital gains and losses netting process and determine the maximum tax rates applicable to the gains. ii) Given that Jean and Steve have taxable income of $450,000 before considering the sales above, what is their gross tax liability for 2021 assuming they file a joint return?
Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year,the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption ofa $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-linedepreciation on the warehouse.Required:.b. What is the character of this gain capital gain and ordiary gain?
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Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On the date of sale, the business balance sheet showed the following assets: Accounts receivable Inventory Furniture and equipment: Cost Accumulated depreciation Leasehold improvements: Cost Accumulated amortization Tax Basis $ 32,700 154,200 Net cash flow 53,000 (42,400) 26,500 (5,300) Required: The purchaser paid a lump-sum price of $322,000 cash for the business. The sales contract stipulates that the FMV of the business Inventory is $166,000, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms. Drake's marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.
Brandon an individual, began business four years ago and has sold 1231 assets with $5,700 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year,Brandon sold the following business assets: Asset original cost accumulated deprection gain/loss Machinery $31,400 $8,400 $10,700 Land 54,000 0 27,000 Building 118,000 34,000 (10,000) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and capital gains tax rates for reference.