Chapter 11 Self Quiz
1. Partner X had an initial outside basis of $100,000. At the conclusion of the
first year of operations, Partnership XYZ provided Partner X with a Schedule K-1
that identified his share of each of the partnerships tax results:
Examples: Holding Period of Property Acquired by Gift
Donee receives property as a gift. Donors adjusted basis for the property was $5,000.
Propertys fair market value on date of gift was $3,000.
Donees basis for gain = $5,000
Donees basis for los
Chapter 7 Example
Taxpayer purchased land and building for $5 million. The fair market values of the land
and building are:
The $5 million cost is allocated to the land and building based on their relative fair
Corporate taxpayer sustains a $120,000 tax loss (i.e., an NOL) from operations in 2013
(the current year). Taxpayers 2011 taxable income was $45,000, and 2012 taxable
income was $60,000. What is the federal income tax treatment of Corporations
Casualty Loss Examples
Example 1. The following property was the subject of a casualty.
FMV before casualty
FMV after casualty
Taxpayer received insurance reimbursement of $10,000.
1. If the property is trade or b
More Examples: Investigation of a Business
During 2013, Taxpayer (who is in the restaurant business) incurs $30,000 of expenses to
investigate acquisition of an apparel business. Taxpayer acquires the apparel business
and begins operation on Augus
Investigation of a Business Example
Taxpayer owns several restaurants in Sacramento. During 2013, she incurs $53,000 to
investigate the acquisition of an apparel business. She acquires the apparel business and
on September 1, 2013, she begins operation of
Depreciation Example with Section 179, Bonus Depreciation, and Regular MACRS
During 2013, Taxpayer purchased and placed in service new seven-year depreciable
business personalty at a cost of $1,850,000. Compute the Taxpayers 2013 and 2014
Charitable Contribution Examples
For each of the following assets, (i) identify it as either ordinary income property or
capital gain property, and (ii) determine the amount of the contribution
Stock owned six
months, donated to
UCD Medical Cente
ACCY 171, Fall 2013
Web Assignment #3
Purpose of the Web Assignment: The purpose of this web assignment is to
develop your skill in locating tax information in electronic databases.
This web assignment introdu
Property Transactions Framework
Amount realized (cash received + FMV of noncash property received + debt
relief selling expenses)
- Adjusted basis
(cost [or other basis at acquisition] + capital additions capital recoveries)
Realized gain (loss)
These examples pertain to the treatment of Section 1231 gains and losses.
Chapter 9 Self-Quiz
1. Individual contributes the following property to a new corporation:
FMV = $200,000
What is the FMV of the stock that individual receives? $_
What is individuals realized gain (loss)? $ _
What is individuals recognized ga
ACCY 171 Chapter 8
Identify each of the following assets as ordinary, capital, or Section 1231 assets:
Business computer (LTHP)_
Business computer (STHP)_
Personal-use computer _
Musical composition created by taxpayer_
Taxpayers principal resid
The Fall 2013 ACCY 171 Exam 1 is Tuesday, October 8, 2013. The closed-book exam
(Chapters 4-6) consists of two parts:
Part I 25 5-point multiple-choice questions.125 points
Part II Four 3-part question
For each of the following assets, (i) identify the asset as either ordinary income property or capital gain
property, and (ii) determine the amount of the contribution.
T HE P ARTNERSHIP A S A T AX C ONDUIT
Partners Share of
and Loss (From Rental
Real Estate, Royalties,
Trusts, REMICs, etc
Chapter 10 Example
XYZ Corporation has accumulated E&P of $75,000 at the beginning of the current year. Its
current-year taxable income is $350,000. On December 31 of the current year, XYZ Corporation
distributes business property (FMV of $150,000, adjust
Chapter 9 Example
X and Y form XY Corporation with the following contributions:
X contributes property worth $50,000, with an adjusted basis of $30,000.
Y contributes (i) property worth $20,000, with an adjusted basis of $12,500 and
(ii) services worth $3
Dividends-Received Deduction Examples
Taxable income before dividends-received
1. General rule: 70% x dividends
2. Limit: 70% x taxable income
Solution to Chapter 10 Example
XYZ Corporation has accumulated E&P of $75,000 at the beginning of the current year.
Its current-year taxable income is $350,000. On December 31 of the current year, XYZ
Corporation distributes business property (FMV of $150
CALIFORNIA STATE UNIVERSITY, SACRAMENTO
College of Business Administration
ACCY 171 Federal Tax Procedures I
Dr. Haroldene Wunder
9:00AM 10:00 AM
3:30 PM 4:00 PM
And by ap
EXAMPLES & SOLUTIONS
Compute realized gain (loss), recognized gain(loss), and type(s) of gain or
loss recognized. The solutions provided are for noncorporate taxpayers.
1. Depreciable business personalty (long-ter
Chapter 8 Check Figures
The painting is an ordinary asset, resulting in ordinary income. P. 8-4 of
text. a person receiving a copyright, creative work, a letter, a memorandum
or similar property by lifetime gift from the creator or the person for whom
Property Transactions: Basis, Gain and Loss,
and Nontaxable Exchanges
Framework for property transactions
Basis of property at acquisition
Recognition of gain or loss for tax
Topic 1: Framework for Prop
Chapter 7 Check Figures
a. Credit portion of acquisition price is included in amount realized.
b. Increases amount realized.
c. This is not typical. Decreases amount realized.
d. Increases amount realized.
e. Increases amount reaiized by $10,000.