General Guidelines for Exam #3 Review of Topics for Examination #3:
Chapter14:
Determination of basis for:
1.property received as a gift
2.inherited property
3.property converted from personal use to business
Insta
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General Guidelines for Exam #3 Review of Topics for Examination #3:
Chapter14:
Determination of basis for:
1.property received as a gift
2.inherited property
3.property converted from personal use to business
Installment sales:
Qualifying transactions
Benefits of using the installment sales method Calculation of taxable gain
Wash sales:
Be able to recognize a wash sale
Be able to apply the rules related to wash sales including calculating basis Be able to determine the basis of stock sold applying appropriate rules
Chapter15:
Likekind exchanges: Eligible property
Calculation of gain realized, recognized, and calculation of basis Delayed exchanges—general rules
Involuntary conversions:
Application of rules for casualty gains and condemnation gains Appropriate replacement property
Time period for replacement
Chapter16:
Identifying capital assets
Determining longterm or shortterm status
Application of rules related to individual & corporate taxpayers Tax rates
Netting process
Determining the amount of gain taxed favorably Use of net losses
Sale of personal use capital assets Identification of stock sold
1244 stock:
Qualifications
Deducting 1244 losses Advantages of holding 1244 stock
1202 stock:
Qualifications
General rules
Options: Be able to determine when a gain or loss is recognized and be able to determine the character of the gain or loss from the buyer’s perspective and from the seller’s perspective
Chapter17:
1231—general treatment Identifying 1231 assets
Determining the character of the gain or loss Application of the lookback rule
Depreciation recapture:
Determine when the recaptures rules are used Identifying 1245 v 1250 assets
Determining the amount of 1245 gain Determining the amount of 1250 gain
General knowledge of 291 recapture
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