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##### "(1) If a taxpayer sells for $2,000 property with...

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"(1) If a taxpayer sells for $2,000 property with an adjusted basis of $800, the result would be a: (a) $1,200 gain (b) $1,000 loss (c) $800 gain (d) $800 loss (2)Ann bought a rental house for $50,000 and made $20,000 of capital improvements to it. She has deducted $ 15,000 of depreciation on this property. Her adjusted basis in it is: (a) $85,000 (b) $70,000 (c) $65,000 (d) $55,000 (3) Bill has $10,000 of net long term capital gain and $6,500 of net short ?term capital loss. This nets out to a: (a) $3,500 net long term loss (b) 3,500 net long term gain (c) $3,500 net short term gain (d) $3,500 short term loss (4) Joe received stock as an inheritance from his aunt, worth $10,000. The aunt had paid $8,000 for it. Joes basis in the stock is: (a) $10,000 (b) 8,000 (c) $5,000 (d ) $2,000 (5) Sharon receives a $5,000 insurance settlement on the loss of personal property with a basis of $3,000 that she had held for two years. The result is a: (a) $2,000 short term capital gain (b) $2,000 long term capital gain (c) $2,000 ordinary income (d) $2,000 Schedule A deduction (6) In question 5, if Sharon basis was $13,000, she would have an: (a) $8,000 long term capital loss (b) $8,000 short term capital loss (c) $8,000 personal deduction, subject to a $100 deductible and reduction by 10% of AGI (d) $8,000 long term capital gain (7) John received rental property worth $100,000 in exchange for a property he previously owned with basis of $60,000. He also received $30,000 cash. His recognized gain is: (a) $100,000 (b) $70,000 ( c )$60,000 (e) $30,000 (8) In question 7 above, john basis in the new property is: (a) $100,000 (b) $70,000 ( c )$60,000 (f) $30,000 (9) Joe and Jane sell their principle residence of thirty years on June 30, 2004 for $350,000. They bought the house for $25,000. What id their realized gain on the sale? (a) There is no realized gain (b) $200,000 realized gain (c) $325,000 realized gain (d) $350,000 realized gain (10) What is the amount of the taxable gain for Joe and Jane on the sale of the house? (a) $0 (b) $25,000 taxable gain ( c ) $325,000 taxable gain (e) $350,000 taxable gain

Paper#8025 | Written in 18-Jul-2015

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