At the time of his death in 2022, Donald owned a farm (a qualified, closely held business) with a most suitable use value of $6,150,000 and a current use value of $4,305,000. a. If the special-use valuation election is made, Donald's gross estate must include how much as to the farm? b. Assume the farm had a current use value of $5,535,000 (not $4,305,000). Donald's gross estate must include how much as to the farm?

Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss? Larry sold an apartment building for $300,000 on September 1. The rental property was purchased on September 1, 2017, for $150,000 and was being depreciated over a 27.5-year life using the straight-line method. At the date of sale, the adjusted basis was $124,783. There is an overall § 1231 gain of $__________ How much § 1250 recapture is recognized? $__________ What is the amount of unrecaptured § 1250? $__________ Larry's personal yacht was stolen on September 5. The yacht had been purchased in August at a cost of $25,000. The fair market value immediately preceding the theft was $19,600. Larry was insured for 50% of the original cost, and he received $12,500 on December 1. There is a tax loss (before AGI limitations) of $__________ that is treated as nondeductable personal casualty loss. Larry sold a…

Callie Cooper purchased two pieces of property in 1990: Property Q cost $15,000 and Property R cost $30,000. In 2020, when Callie died, she left the property to her daughter, Christy. At that time, Property Q had appreciated in value to $80,000 while Property R had declined in value, now worth only $10,000.   What is Christy’s basis in each piece of property? What are the tax consequences of the changes in value of the properties from the time of original purchase to the death of Callie?

Lars acquired a new network system on June 5, 2023 (five-year class property), for $69,000. She expects taxable income from the business will always be about $215,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2023 for $430,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2023. TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5   11.52 8.93 9.22 6.93 5.713 6   5.76 8.92 7.37 6.23 5.285 7     8.93 6.55 5.90 4.888 8     4.46 6.55 5.90 4.522 9       6.56 5.91 4.462 10       6.55 5.90 4.461 11       3.28 5.91 4.462 12         5.90 4.461 13…