IRS Notes Ch 14 - 1 Gain or loss a Realized needs to have a...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Gain or loss a. Realized – needs to have a sale take place. 2. Determination of Gain or Loss a. Adjusted basis i. Original cost (or other adjusted basis) plus capital additions less capital recoveries b. Capital additions i. Cost of improvements and betterments to the property that are capital in nature and not currently deductible 1. Ex: A/C, Heating, Roof, etc. c. Capital recoveries i. Amount of basis recovered through: 1. Depreciation or cost recovery allowances 2. Casualty and theft losses and insurance proceeds 3. Certain corporate distributions d. Recognized gain or loss i. Amount of realized gain loss that is included in deducted from gross income 3. Realized gains and losses are not always recognized a. Realized gains may be deferred or excluded b. Realized losses may be deferred or disallowed 4. Capital recover doctrine a. Taxpayer is entitled to recover cost or other original basis of property acquired and is not taxed on that amount
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
b. To extent receive only investment back upon disposition of an asset, taxpayer has no gain. 5. Basis considerations
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/25/2009 for the course ACC 101 taught by Professor Fried during the Spring '09 term at Coastline Community College.

Page1 / 5

IRS Notes Ch 14 - 1 Gain or loss a Realized needs to have a...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online