property_transactions_examples

property_transactions_examples - Asset Acquired Sold Cost...

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TAX 5015 Review of property transactions [1] The Patriot Company (a sole proprietorship) sold four assets in 2010. The gains and losses are summarized in the table below. What is the character of the gains and losses? Asset Purchased on Sold on Depreciation Gain (Loss) Character Machine #1 10/10/08 11/11/10 $323,000 $56,000 Machine #2 10/02/07 11/11/10 65,000 (15,000) Machine #3 09/23/06 11/11/10 183,000 23,000 Machine #4 09/23/06 11/11/10 28,000 64,000 [2] A business machine purchased April 10, 2007 for $86,000 was fully depreciated in 2007 using the Sec. 179 expensing election. On August 15, 2010, the machine was sold for $57,000. What is the amount & character of the gain or loss?
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[3] The table below summarizes the Sec. 1231 assets sold by the Black Company (a sole proprietorship) this year. What is the character of the gains and losses?
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Unformatted text preview: Asset Acquired Sold Cost MACRS Depr. Adjusted basis Sales Price Gain (loss) Character Machine 3/10/06 8/10/10 $40,000 $29,736 $10,264 $32,000 $21,736 Factory building 2/12/03 7/23/10 80,000 18,838 61,162 90,000 28,838 Tractor 5/16/05 11/13/10 52,000 52,000 - 0 - 30,000 30,000 Overhead crane 11/12/99 2/25/10 74,000 74,000 - 0 - 18,000 18,000 [4] The chart below summarizes the Sec. 1231 assets sold by the Gold Company (a C-corp) this year. What is the character of the gains and losses? Asset Acquired Sold Cost MACRS Depr. Adjusted basis Sale Price Gain (Loss) Character Machine 3/10/06 8/10/10 $40,000 $29,736 $10,264 $ 2,000 (8,264) Factory building 2/12/03 7/23/10 80,000 18,838 61,162 90,000 28,838 Tractor 5/16/05 11/13/10 52,000 52,000 - 0 - 60,000 60,000 Overhead crane 11/12/99 2/25/10 74,000 74,000 - 0 - 18,000 18,000...
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This note was uploaded on 08/29/2010 for the course TAX 5015 taught by Professor Kelliher,c during the Summer '08 term at University of Central Florida.

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property_transactions_examples - Asset Acquired Sold Cost...

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