Federal Taxation Chapter 15 Test Bank Solution Manual (Graded A+) Already Passed
What is remaining after capital losses that are deducted form capital gain and represents the amount
subject to capital gain taxation - Answers Net gain
Adding a bedroom, remodeling a kitchen and installing an automatic sprinkler are all considered -
Answers capital improvments
A broken window is considered a - Answers maintenance
A gain is considered taxable when the property is - Answers sold
Land and principal residence can - Answers never be depreciated
A net gain on an asset is the amount subject to - Answers capital gain taxation
If less than 100% of the sales price is received in the year of sale, the tax code considers it to be an -
Answers installment sale
When the exchange must be like property for like property and simultaneous is - Answers 1031
exchange
What is anything of value given in an exchange which is not like property - Answers Boot
Under current law, a qualified taxpayer may exclude the entire gain on the sale of their principal
residence up to ___if filing a single return - Answers $250k
In order to qualify for an exclusion from capital gain on a residential property, the homeowner must
have - Answers owned and occupied the property for two of the previous five years
Homeowner may deduct from income tax liability - Answers uninsured losses to property
A homeowner's residence is not eligible for a capital loss deduction if the home - Answers sells for less
than invested
Personal residence - Answers cannot be depreciated
Condominium assessments are - Answers not tax deductible
Real estate property must be exchange for - Answers real property
What would not be considered like properties under a 1031 tax exchange - Answers unimproved lot for
timber
Sean O'Brien just sold the house he purchased 18 months ago for $185,000. His adjusted basis is
$170,000. He will pay 6% in sales commissions and $3500 in closing costs. For federal income tax
purposes, what is the amount of Sean's capital gain? - Answers $400
What is remaining after capital losses that are deducted form capital gain and represents the amount
subject to capital gain taxation - Answers Net gain
Adding a bedroom, remodeling a kitchen and installing an automatic sprinkler are all considered -
Answers capital improvments
A broken window is considered a - Answers maintenance
A gain is considered taxable when the property is - Answers sold
Land and principal residence can - Answers never be depreciated
A net gain on an asset is the amount subject to - Answers capital gain taxation
If less than 100% of the sales price is received in the year of sale, the tax code considers it to be an -
Answers installment sale
When the exchange must be like property for like property and simultaneous is - Answers 1031
exchange
What is anything of value given in an exchange which is not like property - Answers Boot
Under current law, a qualified taxpayer may exclude the entire gain on the sale of their principal
residence up to ___if filing a single return - Answers $250k
In order to qualify for an exclusion from capital gain on a residential property, the homeowner must
have - Answers owned and occupied the property for two of the previous five years
Homeowner may deduct from income tax liability - Answers uninsured losses to property
A homeowner's residence is not eligible for a capital loss deduction if the home - Answers sells for less
than invested
Personal residence - Answers cannot be depreciated
Condominium assessments are - Answers not tax deductible
Real estate property must be exchange for - Answers real property
What would not be considered like properties under a 1031 tax exchange - Answers unimproved lot for
timber
Sean O'Brien just sold the house he purchased 18 months ago for $185,000. His adjusted basis is
$170,000. He will pay 6% in sales commissions and $3500 in closing costs. For federal income tax
purposes, what is the amount of Sean's capital gain? - Answers $400
