Chapter_9__Handout_Notes - If the FMV of the property at...

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Chapter 9 Acquisitions Proper classification of use and type Use: personal vs. business (or mixed-use) Type: tangible (real or personal) vs. intangible Adjusted Basis – Exhibit 9-1 Basis in conduit entities – Exhibit 9-2 Property Dispositions Amount realized – sales price less sales expenses Realized gain/loss Recognized gain/loss Original investment Cash + FMV of property given + FMV of services + increase in liability Purchase of multiple assets Allocate purchase price to relative FMV of assets Purchase of assets of a business Purchase of corporate stock No change is basis of assets Constructed assets Capitalize direct and indirect costs
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Gift basis/holding period = donors basis/holding period
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Unformatted text preview: If the FMV of the property at the date of gift is < donor basis a split basis rule applies Inherited basis FMB at DOD (date of death) or Alternative Valuation Date All inherited property is considered long-term Personal use converted to business use Use lower of basis or FMV at conversion Split basis rule applies when FMV at conversion is less than basis at conversion Basis in securities Stock dividends Non-taxable divide basis across all shares Taxable FMV of new shares = basis of new shares (and taxable income) Wash Sales 30 days before or after sale Add unrecovered basis to new investment...
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Chapter_9__Handout_Notes - If the FMV of the property at...

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