1(a)

The current tax year is 2020. The following 1231 transactions occurred:

2013 Sold property for $17,000. Tax basis of $23,000.

2016 Sold property for $34,000. Tax basis of $50,000.

2020 Sold property for $100,000. Tax basis of $70,000.

How much of the 1231 gain is considered capital in the current year?

		$14,000
		$8,000
		$0
		$16,000
		$30,000

1(b) You sell a machine with an adjusted tax basis of $200,000 for $225,000. The original purchase price was $215,000. This means we have $15,000 in accumulated depreciation. The machine never had any capital additions applied to it. How much 1245 recapture will need to be reported as ordinary income?

		$25,000
		$10,000
		$15,000
		$0

1(c) You signed a contract 5 years ago to sell all the timber on your land for $500,000. In 2020, you cut your timber. You have a total tax basis of $120,000 in the timber. On Jan 1 2020 FMV for timber is $450,000. How much of the gain is considered ordinary income?

		$330,000
		$380,000
		$50,000
		$450,000

1(d) After selling property, how long until you need to purchase like-kind property in order to defer any tax?

		30 days
		Must be simultaneous
		180 days
		45 days

1(e) In like-kind exchanges the _______ may be taxable.

		loss
		fair market value
		basis
		boot