0. A taxpayer engaged in the practice of his profession bought a brand-new motor vehicle in the amount of Php 5 Million. Which is FALSE? S1: Depreciation expense can be claimed if the asset shall be used in business. S2: The motor vehicle, if used in business, shall be classified as an ordinary asset. Group of answer choices d. Both are true b. Only S2 is false c. Both are false a. Only S1 is fal

0. A taxpayer engaged in the practice of his profession bought a brand-new motor vehicle in the amount of Php 5 Million. Which is FALSE? S1: Depreciation expense can be claimed if the asset shall be used in business. S2: The motor vehicle, if used in business, shall be classified as an ordinary asset. Group of answer choices d. Both are true b. Only S2 is false c. Both are false a. Only S1 is fal

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 4DQ

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1 Suppose the taxpayer received $35,000 in cash, a ring worth $3,000 and the buyer assumed the seller's note. a. What is the amount realized? b. What is the adjusted basis of the property? c. What is the gain on the sale of the property?
Which one of the following statements is false? Group of answer choices A capital asset may be an asset connected or not connected to trade or business of the taxpayer. An asset held in business as investment is ordinary asset. Inventory is ordinary asset. An asset used in business which is subject to depreciation is an ordinary asset. Need typed answer only.Please give answer within 45 minutes
A Moving to another question will save this response. Question 3 Which the following is used to find MACRS depreciation? O Depreciable base of the asset O Each of the choices is correct O The life of the asset as determined by tax code O A percentage of the depreciable base as determined by tax code AMoving to another question will save this response. MacBoc esc F1 F2 D00 F4 F5 @ 2$ 4 Q W E tab A S F G caps lock hift C V alt %#3
CASE B Mr. RVC acquired his business for ₱3,000,000. The fair market value of the business is ₱5,000,000. Will it be more useful if the accounting records were adjusted corresponding to the fair market value amount of the business? Justify your answer.
Is a deduction allowed under the MACRS rules for depreciable real estate (used in a business or held for investment) in the year the property is sold? If so, explain how it is calculated. O A. Yes, a deduction is allowed under the MACRS rules for depreciable real estate in the year the property is sold. It is assumed that the asset is held for the entire year. The amount of depreciation is computed by taking 100% of the annual depreciation. O B. No, there is no deduction allowed under the MACRS rules for depreciable real estate in the year the property is sold. O C. O D. Yes, a is deduction allowed under the MACRS rules for depreciable real estate in the year the property is sold. It is assumed that the asset is held for half the year. The amount of depreciation is computed by taking 6/12's of the annual depreciation. Yes, depreciation for real estate is computed using tables that follow the mid-month convention, so depreciation is allowed in the year of sale. The amount of…
5. Assume the same facts as in (4) above except the destroyed property was a personal residence and that the fire was declared a Presidential disaster. Now calculate the amount of the deductible loss assuming the taxpayer's AGI was $200,000. 6. Briefly recap the current rules applicable to net operating losses. How much of the NOL is currently deductible and what happens to unused losses.
H6. A taxpayer places a $53,000 5-year recovery period asset (not an auto) in service in 2022. This is the only asset placed in service in 2022. Assuming no special elections (e.g., election to expense), what is the amount of total cost recovery deduction? a. $17,490 b. $53,000 c. $10,600 d. $5,300
Which of the following transactions would most likely be a deductible repair under s 25-10? a. Repair of damage to property that existed at the time of purchase but was not known to the purchaser. b. Repainting a rental property after purchase but before tenants move in. c. Repainting a rental property in-between tenants vacating and new tenants moving in. d. Mechanical repairs to a vehicle that was not drivable at the time of purchase.
5. Alburo invests office equipment witha fair market value of P560,000, delivery equipment with a fair market value of P712,000, and cash of P432,000. She owes P544,000, represented by a note on the delivery equipment. If Alburo's office equipment cost P640,000 and ·has accumulated depreciation of P240,000, the amount at which the asset should be entered on the books of the new partnership would be a. P400,000, b. P560,000. C. P640,000. d. P712,000.
18. Ryland Company, a calendar year taxpayer, purchased commercial realty for $2 million and allocated $200,000 cost to the land and $1.8 million cost to the building. Ryland placed the real estate in service on May 21. a. Compute Ryland's MACRS depreciation with respect to the realty for the year of purchase. b. How would your answer change if Ryland placed the realty in service on September 2 instead of May 21? c. How would your answer to part (a) change if the building was a residential apartment complex instead of a commercial office?
Statement 1: The value of property acquired by gift, bequest, devise, or descent, as well as the income from such property, shall be excluded from the gross taxable income of the recipient. Statement 2: Gains realized from the sale or exchange or retirement of bonds, debentures, or other certificates of indebtedness with a maturity of at least 5 years, shall not be taxable to the investor-seller. a. Statement 1 is trueb. Statement 2 is truec. Both Statements are falsed. Both statements are true
Which of the following is not a capital asset to an individual taxpayer? Stocks A 48-foot sailboat Raw land held as an investment Inventory in the taxpayer's business All of the above are capital assets