RIA RESEARCH EXERCISE Use the RIA Checkpoint database to answer the following questions. Cut and paste the relevant Internal Revenue Code and Treasury Regulation section(s) into your solution and explain how the authority answers the tax issue in question. Give the most specific citation applicable [e.g., Sec. 168(a)(1)] that answers the question. NOTE: If the answer can be found in both the code and regulations, you must provide both authorities.

a. On March 1, Angela sells land that cost $20,000 for $32,000. To make the sale, Angela agrees to pay the property taxes on the land for the entire year. What code section and/or regulation provides the tax treatment of the payment of the property taxes on the sale of the property?

b. Miguel receives stock with a fair market value of $30,000 from his grandfather as a wedding present. His grandfather’s basis is the stock is $5,000. A gift tax of

$2,000 is paid by the grandfather on the transfer. What code section and/or regulation provides the tax treatment of the gift taxes paid by the grandfather?

c. Gloria exchanges her interest in the Amling Partnership for an interest in the Staten Partnership. What code section and/or regulation denies like-kind exchange treatment on Gloria’s exchange?

d. Melvin’s apartment building is condemned by the City of Lacy. To compensate Melvin, the city gives him a comparable apartment building in another part of the city. Melvin had paid $80,000 for the apartment building. The replacement building is worth $125,000. What code section and/or regulation allows Melvin to defer recognition of the gain he realizes on his apartment building?

Research Skills