What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they calimed a 0 dollar depreciation recapture liability on their tax return? Group of answer choices  1) The IRS will sue you for tax evasion 2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount  3) None of these are correct  4) Nothing. Thee IRS does not have any clear rules on this specific issue  5) This makes sense, as it avoids a costly tax

Which of the following is the least likely reason why the 6% capital gains tax is a final tax? A. To mitigate the susceptibility of possible deferral of the actual payment of the tax if the voluntary compliance method is used B. To ensure payment of the applicable tax before property titles are transferred to the buyer   C. To mitigate the susceptibility of non-reporting of the sale, leading to tax evasion   D. All of the other choices are equally likely to be the reason why

What is the only way to convert a tax deferral from a 1031 like kind exchange into a tax avoidance? Group of answer choices  1) Employing a qualified intermediary  2) Using a LLC to own the property 3) Nonw of these are correct  4) Employing a smart tax acciuntant/lawyer  5) Death

For tax purposes, you can deduct the __________________________ portion of debt service. The tax deductibility of this unique to real estate Group of answer choices 1) principal, true 2) interest, true 3) not enough information has been provided 4) principal, false 5) interest, false

not use ai please

Question 78 of 85. Choose the response that correctly describes a condition, or conditions, that must be met for property to be considered depreciable. The property must be an item that will eventually wear out, get used up, become obsolete, or otherwise lose its value. The taxpayer must place the property in service and dispose of it within the same year. The taxpayer must either rent or own the property and use it in their business or in an income-producing activity. The useful life of the property must not exceed one year.

Why might it be more advantageous for a taxpayer to demonstrate that they ... Why might it be more advantageous for a taxpayer to demonstrate that they have realised a capital gain, rather than a profit from buying and selling an asset? O a. Capital gains does not apply where the person disposing of the asset did not purchase the asset for profit making purposes. O b. Capital gains can be deferred indefinitely by a taxpayer, until they actually make a capital loss. O c. A capital gain on the disposal of an asset is not subject to tax if the amount was realised for non-business purposes. O d. If a capital gain, then CGT is levied against the difference of the cost base and the disposal amount, and a 50% discount may be available to a non company taxpayer. Which statement is correct? Which statement is correct? O a. A company is resident of Australia if it is incorporated in New South Wales O b. The ATO determines which taxpayers are residents or non-residents through its rulings program…

1. What is the tax preparer required to disclose before allowing a customer to apply for a Financial Product? a) All filing and product options available to the customer, including those with no additional costs b) The timing and costs associated with each refund option c) All fees and/or repayments that will be deducted from the refund d) All of the above e) Nothing. The tax preparer is not required to disclose anything to the customer.

The faster an asset can be depreciated, according to IRS rules, the greater a company's after-tax profits. Is this true or false?

The tax law requires that capital gains and losses be separated from other types of gains and losses. Among the reasons for this treatment are: a."Long-term capital gains may be taxed at a lower rate than ordinary gains" and "Net capital loss is deductible only up to $3,000 per year for individual taxpayers". b.Short-term capital losses are not deductible. c.Net capital loss is deductible only up to $3,000 per year for individual taxpayers. d.Long-term capital gains may be taxed at a lower rate than ordinary gains.