AC256_Finley_Joey_Property Transactions_Capital Gains_and_Losses_Unit 5

AC256_Finley_Joey_Property Transactions_Capital Gains_and_Losses_Unit 5

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Running head: PROPERTY TRANSACTIONS, CAPITAL GAINS AND LOSSES 1 Property Transactions, Capital Gains and Losses Joey Finley Kaplan University Federal Tax AC256 Emil Koren June 21, 2011
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Property Transactions, Capital Gains and Losses 1) Problem I:5-33 Amount Realized. Tracy owns a non-depreciable capital asset held for investment. The asset was purchased for $250,000 six years earlier and is now subject to a $75,000 liability. During the current year, Tracy transfers the asset to Tim in exchange for $94,000 cash and a new automobile with a $50,000 FMV to be used by Tracy for personal use; Tim assumes the $75,000 liability. Determine the amount of Tracy’s LTCG or LTCL. a) Tracy collects $219,000 (cash, car, and liability). b) The basis in the property is $250,000, so she has a long-term capital loss of $31,000. 2) Problem I:5-35 Sale of Property Received as a Gift. During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the
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AC256_Finley_Joey_Property Transactions_Capital Gains_and_Losses_Unit 5

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