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.

Can you explain the choices an executor of an estate has in determining the values of assets included in the estate for tax purposes.

___________ and __________ are examples of a depreciable asset, while ____________ and ____________ are examples of non-depreciable assets that can be used to generate business or property income.

Tax Drill - Property Received by Gift Indicate whether the following statements are "True" or "False" regarding the tax treatment when a taxpayer receives property as a gift. a. If gift taxes are paid by the donor, the portion of the gift tax paid that is related to any appreciation is taken into account in determining the donee's gain basis. b. The holding period for property acquired by gift begins on the date the donor acquired the property if the loss basis rule applies. c. The basis for depreciation on depreciable gift property is the donee's gain basis.

In determining the basis of like-kind property received, postponed losses are: O Subtracted from the basis of the old property. O Added to the fair market value of the like-kind property received. O Subtracted from the fair market value of the like-kind property received. O Added to the basis of the old property. O NONE of the choices are correct

In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III     B) II and IV     C) I and IV     D) II, III, and IV

If after paying debts and expenses, the estate principal is not adequate to satisfy the various legacies, the legacies are satisfied to whatever extent possible through the: a. probate process. b. a property devise. c. abatement process. d. legacy process.

Adjusted Basis of property is the property's:     a. riginal basis adjusted to the date of the disposition.     b. cost or other basis of the property on the date the taxpayer acquires it.       c. cost plus all of the expenses associated to put it in place.     d. deprecated value.

Days where rental property is used by the taxpayer to repair and maintain the property do not count as personal days. True or false

What tasks does the executor of an estate perform?