Tax Drill - Assumption of Liabilities
Jocelyn contributes land with a basis of $60,000 and fair market value of $90,000 and inventory with a
basis of $5,000 and fair market value of $8,000 in exchange for 100% of Zion Corporation stock. The
land is subjec
Moving Expense Deduction, Time Limit
Moving Expenses are deductible for moves in connection with the commencement of
work at a new principal place. To meet the distance test, the new taxpayers job location
must be at least 50 miles farther. To m
Realized Gain Defined
Realized gain or loss is the difference between the amount realized from the sale or
other disposition of property and the propertys adjusted basis on the date of
disposition. If the amount realized exceeds the propertys a
Chapter 15 Problems 6, 11, 29
6. Which of the following qualify as like-kind exchanges under S 1031?
a. Improved for unimproved real estate
b. Vending machine (used in business) for inventory.
c. Rental house for personal residence.
d. Business equipment
Problems # 7, 28, 32
7. David, a sole proprietor, of a bookstore, pays $7,500 premium for medical insurance for him and his
family. Joan, an employee of a small firm that doesnt provide her with medical insurance, pays
medical insurance premium
Problems # 1. 28, 32
1) Sophia and Jacob are married and file a joint return. The return for 2013 included a form 2106 for
each of them. The return for 2014, however, included a Form 2106 and a Schedule C. In terms of
employment status, what cou
Tax Exam 2 Study Guide
Records of Life Insurance Proceeds
Life insurance proceeds paid to the beneficiary because of the death of the insured are exempt from income tax.
Scholarship and Gift Income General
Payments or benefits received by a student at an
Chapter 16 Problems 2, 12, 50
2. An individual taxpayer sells some used assets at a garage sale. Why are none of the proceeds
taxable in most situations?
The amount of proceeds would not be enough most likely, so they wouldnt be taxed.
12. Hubert purchase
Ad Valorem- Personality
Tax on wealth- real
estate & capital
Anything owned that is