19. Which of the following transfers meet the exchange requirement for deferral
under like-kind exchange provisions?
To qualify for nonrecognition, a direct exchange of like-kind property
must occur. Thus, a sale o
25. Firefly, Inc., acquires business equipment in July 2014 for $210,500.
a. What is Firefly's maximum Section 179 deduction for 2014? Explain.
Because Firefly acquired over $200,000 of qualifying Section 179
property, the annual investment limit applies.
ACQUISITIONS OF PROPERTY
23. Determine the adjusted basis of each of the following assets:
a. Andr purchased a parcel of land three years ago for $17,000. In the
current year, the adjoining property owner sues him, claiming that part of
29. For each of the following situations, explain whether a deduction should be
allowed for entertainment expenses:
a. Neil owns a real estate agency and has an annual Christmas party at his house. The party is
only for employees of his firm and costs $2,
67. Erin, a single taxpayer, has a taxable income of $103,000 in the current
year before considering the following capital gains and losses:
Short-term capital gain
Long-term capital gain
Unrecaptured Section 1250 gain
In addition, E
28. Determine how each of the following expenses would be deducted for tax
purposes. If the expense is not deductible, explain why not.
a. Chander paid $500 in interest on a loan he used to purchase equipment for
his retail business.
The interest is relat
ACCT-5150 (Federal Taxation
Clark Nuber, PS
10900 NE 4th Street, Suite
Bellevue, WA 98004
Email: [email protected]
1) The purpose of this course is to introduce the business