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Unformatted text preview: 30) c) because the accounts receivable where acquired in the ordinary course of a trade or business d) it has business incentive e) building is a depreciable property f) cars are not property h) 31) In the first one Lois is selling a personal item, where she has all the rights and ownership, where as in the 2nd one she is selling a book owned by somebody else, so the book will be considered a capital asset and the sale will meet longterm holding period rules 32) Byron will have a long term capital gain of $500,000; and the $50 per unit will also receive long term capital gain treatment regardless of how long the paten was held 33) The $1,000 payments and the percentage of the monthly profits will be ordinary income to Cathy Crafts. Dan may deduct the percentage payments as ordinary business expenses. 34) November 17 2010 purchase 40,000 July 21 2011 exchange 42,000 The holding period for the truck begins on November 18 2010, and its basis 40,000. He will have a long term capital gain of 2,000The holding period for the truck begins on November 18 2010, and its basis 40,000....
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This note was uploaded on 01/02/2012 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.
- Spring '11