TAX5005 - Exam 3 - IRC Summaries

TAX5005 - Exam 3 - IRC Summaries - TAX5005 Exam3...

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TAX5005  IRC Summaries Exam 3 166: Bad Debts T REATMENT : Deduct P ROP S : (1) Debt (2) Worthless (3) Within the taxable year L IMIT : Deductible only to the extent of the basis of the debt. 174: Research and Experimental Expenditures T REATMENT : Elected Rule, treatment depends on election P ROP S : (2) In connection with a trade or business O PTIONS : Expense Method - elect to expense all R&E expenses in current and subsequent years - no IRS approval needed if adopted for first taxable years in which expenses  were paid or incurred Deferral and Amortization Method - expenses are amortized ratably over a period ≥60 months - once elected, need IRS permission to change A SIDE : than one accounting period - must be capitalized under §162/§263, and then deducted as a loss under §165, but only  after they can be shown to be totally worthless Page 1 of 5
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TAX5005  IRC Summaries Exam 3 1031: Like-kind Exchanges T REATMENT : Nonrecognition P ROP S : (1) Exchange, not sale (2) Of property (3) Held for productive use (4) In gain-seeking activities (trade/business or investment) (5) Solely for (6) Like-kind property, held for gain-seeking purposes (7) Excluding: - Inventory - Stocks, bonds, notes, other securities, or any evidences of indebtedness or interest - Interests in a partnership - Certificates of trust or beneficial interests - Court-ordered evidence of indebtedness - Livestock of different sexes B ASIS  R ULES : Gain results to a taxpayer receiving cash or other nonqualifying property (“boot”)
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This note was uploaded on 12/13/2009 for the course TAX 5005 taught by Professor Boyles during the Spring '08 term at University of Florida.

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TAX5005 - Exam 3 - IRC Summaries - TAX5005 Exam3...

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