Assets Income & Gains Deductions Principles Hodgepodge

### 100

What is The Code does not define what a capital asset is, only what it is not.
How does the Code define a capital asset?

### 100

What is $80,000 Amount realized of$135,000 ($90,000 cash +$20,000 art + $25,000 loan assumption) minus$50,000 adj. basis and $5,000 selling expense =$80,000.

### 100

What is when the payment is made
Under the cash method of tax accounting, tax deductions are generally taken when:

### 100

What is $480 Exclusion ratio = 40,000 / 100,000 = 40%. Therefore, 60% of each annuity payment is included in gross income.$800 x .60 = $480. Jane purchased an annuity contract that pays her$800 per month. The annuity cost her $40,000 and it has an expected return of$100,000. How much of each monthly annuity payment is includible in Jane's gross income?

### 200

What is When property that is not like-kind (i.e., cash or other property, known as boot'') is received, then any realized gain is recognized to the extent of the boot received. If there is a realized loss in a boot received situation, such loss will not be recognized.
What is "boot" and how is it treated in like-kind exchanges?

# Tax and more Tax

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