Chap.8-9.PropertyDisposition131_revised_Sp07

Chap.8-9.PropertyDisposition131_revised_Sp07 - PROPERTY...

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PROPERTY DISPOSITION Chapters 7 & 8
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DETERMINATION OF GAIN & LOSS How is gain or loss determined? It is the amount realized  less the adjusted  basis.
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What is the AMOUNT REALIZED Cash plus FMV of property received  plus Liabilities or expenses of seller  assumed by the buyer less Liabilities or expenses of buyer  assumed by the seller less Selling expenses
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Results from the sale or exchange of  capital assets. What is a capital asset? It is defined as everything but for. ... Tax treatment Depends on entity: individuals v. corporations Net gains are treated differently from net  losses
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CAPITAL LOSSES Corporations: Can deduct cap losses ONLY against cap  gains Excess – carry back 3 years, forward 5 Individuals:  Limited to $3,000 maximum per year Excess – carry forward forever
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CAPITAL GAINS Corporations: Taxed at ordinary tax rates Individuals: If long-term (held > 1 year), preferential  maximum rate of 5 or 15%, (special  subcategories - 25 & 28%).
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This note was uploaded on 05/19/2008 for the course ACCT 3531 taught by Professor Ryan during the Spring '08 term at Temple.

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Chap.8-9.PropertyDisposition131_revised_Sp07 - PROPERTY...

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