ch10 notes - Done basis Done basis+ gift tax on the dep...

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Done basis Done basis+ gift tax on the dep Gift tax=tax or fmv Donor basis 5000 Fmv on date of gift 2000 5000+0=5000 Refered to the gain basis The loss basis is the lesser of fmv or donors basis on the date of the gift Holding period? Tacking Inheritance Fmv on date of death or executor can elect olternate evaluation date 6 months later -only if it will reduce the value of the estate over all and it must reduce the tax -all assets are long term --except you cant wash asstes through someone you know is going to die 100 shares of common @10 basis of 1000 100 divid common with no right to revcieve. Common --now have 200 sh. 200/1000=@5 a share -----holding period of common inclused the holding period of divid If 100 divid preferred uncommon -fmv of common 2000 10/12x1000=preferred -fmv of preferred 10000 2/12x1000=common Depreciate-tangible- return of capital and getting it as you use the asset. In tez you capitalize assets even though the underlying asset may not be capital. All assets are capital except
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This note was uploaded on 02/03/2012 for the course ENG 101 taught by Professor Bob during the Spring '11 term at Canisius College.

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ch10 notes - Done basis Done basis+ gift tax on the dep...

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