Property Dispositions s11

Property Dispositions s11 - Property Dispositions...

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Property  Dispositions
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Dispositions in General Gain or Loss realized is the arithmetic  difference between the amount realized and  the adjusted basis A gain or loss realized is recognized except as  otherwise provided Certain losses are excluded or deferred Noncorporate taxpayers can only deduct certain  losses
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Amount Realized Amount of money received Plus the fair market value of other  property received Plus liabilities discharged in the  transaction (net of liabilities  assumed) Minus selling costs    
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Concepts Related to Realization and  Recognition Realization occurs upon any sale or other disposition;  Recognition occurs unless some provision of the law  provides otherwise. Special rules Worthlessness—Treated as a disposition for zero; in the  case of worthless securities, a “sale” is deemed to have  occurred. Abandonment—Treated as a disposition for zero. Demolition—Not treated as a sale or disposition, basis is  reallocated to the land (or other assets)
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Adjusted Basis Generally  COST Increased by betterments or  improvements Repair vs. Improvement Decreased by depreciation allowed or  allowable and other capital recoveries.
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Property Dispositions s11 - Property Dispositions...

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