chap 15 test bank

chap 15 test bank - livestock has been held for over one...

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livestock has been held for over one year. ANS: F Livestock of different sexes do not qualify as like-kind property. PTS: 1 REF: Example 2 8. To qualify as a like-kind exchange, real property must be exchanged either for other real property or for personal property with a statutory life of at least 39 years. ANS: F Real property must be exchanged for other real property. 15-6 2009 Annual Edition/Test Bank PTS: 1 REF: p. 15-3 9. The exchange of unimproved real property located in Topeka (KS) for improved real property located in Atlanta (GA) qualifies as a like- kind exchange. ANS: T Both properties are realty and are located in the United States. PTS: 1 REF: Example 2 10. Jena owns land as an investor. She exchanges the land for a warehouse in which she will store the inventory of her business. The exchange does not qualify for like-kind exchange treatment. ANS: F Both assets are in the real estate category. Exchanging investment property for business property is a qualified exchange. PTS: 1 REF: Example 2 11. A building located in Virginia (used in business) exchanged for a building located in France (used in business) cannot qualify for like-kind exchange treatment. ANS: T Real property located in the United States exchanged for foreign real property does not qualify as like-kind property. PTS: 1 REF: p. 15-4 12. The exchange of personal use property for other personal use property (e.g., trade-in of personal use automobiles) can qualify as like-kind property. ANS: F Only business or investment property can qualify as like-kind property. PTS: 1 REF: Example 2 13. Agnes owns land held as an investment located in El Paso, Texas. Her sister, Reba, also owns land held as an investment located in Portland, Oregon. If Agnes and Reba exchange their land, neither can qualify for 1031 like-kind exchange treatment. ANS: F Land held as an investment located in El Paso exchanged for land held for investment located in Portland qualifies as like-kind property. Exchanges of property between related parties can qualify for 1031 like-kind exchange treatment under certain conditions. PTS: 1 REF: p. 15-4 | p. 15-5 14. Any depreciable tangible personal property can be exchanged for other depreciable tangible personal property and qualify as like- kind property. ANS: F The Regulations provide greater specificity in determining whether depreciable tangible personal property is of a like-kind or class. Such property held for productive use in a business is of a like class only if the exchanged property is within the same general business asset class or the same product class. Property Transactions: Nontaxable Exchanges 15-7 PTS: 1 REF: p. 15-5 15. In a like-kind exchange involving boot, the ceiling on recognized gain is the lower of realized gain or boot received. ANS: T Realized gain serves as a ceiling on recognized gain. If the boot received exceeds realized gain, recognized gain is limited to the realized gain. If the boot received is less than realized gain, recognized gain is the boot
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This note was uploaded on 03/25/2012 for the course EAC 4421 taught by Professor Na during the Spring '12 term at FIT.

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chap 15 test bank - livestock has been held for over one...

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