Chapter 7 - Chapter 7 Property Transactions: Basis, Gain...

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Chapter 7Property Transactions: Basis, Gain and Loss, and Nontaxable ExchangesDetermination of Gain or LossoAmount Realized – Adjusted Basis = Realized Gain/LossBeginning Basisis always the purchase price of an assetoDepreciation changes the basis which is called the Adjusted BasisAmount RealizedoTotal consideration received, including cash, FMV of property received, mortgages/loans transferred to buyeroReduced by any selling expensesAdjust BasisoOriginal basis of an asset is generally its cost.oOriginal cost plus capital additions less capital recoveriesCost of improvements and betterments to the property that are capital in nature and not currently deductibleCapital recoveriesAmount of basis recovered through:oDepreciationoAmortizationoDepletionoCasualty and theft lossesIs the Gain/Loss RecognizedoThe Gain/Loss is not always included in the computation of taxable income. If it isnot included,

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Term
Fall
Professor
fabioambrosio
Tags
Accounting, Depreciation, basis, Alice, Gift Basis

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