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Unformatted text preview: capital gain of each later $1,000 payment. As for the alternative income tax reporting treatment: There is a basis recovery for $8,000 and a remainder of the transaction reported on installment basis. Publicly traded stock: 453 is not available; 453(k)(2)(A). $10,000 is the immediate gain. d) The installment obligation was received two years ago and no payment has been made on the obligation. Furthermore, sale within 12 months of liquidation limit is applicable - 453(h)(1)(A). Installment method is not available. A would: (1) recognize 10,000 LTCG (20,000 less 10,000 basis) and (2) take a $12,000 basis in the installment obligation under 334(a)....
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This note was uploaded on 05/16/2011 for the course MBA 778 taught by Professor Waynetanna during the Fall '10 term at Chaminade University.
- Fall '10