Wiley CPA REG Practice Exam B Part II Questions With Complete Solutions

A heavy equipment dealer would like to trade some business assets in a nontaxable exchange. Which of the following exchanges would qualify as nontaxable? correct answer: A corporate office building for a vacant lot An exchange will be non-taxable if it qualifies under the like-kind exchange rules. All realty is considered like-kind property. Since the building and the land are both realty, this qualifies as a non-taxable like-kind exchange. Beginning in 2018, only real property exchanged for real property qualifies under the like-kind exchange rules. Pittsburg does not have a CPA license. Which of the following activities may he properly perform? correct answer: Preparing tax returns. No CPA license is needed to prepare a tax return. Among which of the following related parties are losses from sales and exchanges not recognized for tax purposes? correct answer: Grandfather and granddaughter Losses from sales and exchanges made by related parties are not recognized for tax purposes. A taxpayer's brothers and sister (whole and half blood), spouse, ancestors and lineal descendants are considered related parties. A taxpayer's in-laws are not considered members of his/her f