1)Bobs building was taken over by the state and destroyed so that a new football stadium could be built. Bobs basis in his building was $400,000. The state paid him $1,250,000 for the building. Bob bought a new building within one year for $900,000. How much taxable income will Bob recognize on the taking of his building if he elects to have Sec. 1033 apply.

2)Arlene and Bill are married and own a house. They have lived in the house and used it as their principal place of residence for 3 out of the last 5 years. For the first 2 years they owned the house they rented it and reported $25,000 of taxable income. However, they took depreciation deductions of $13,000 in total over the two years. Their basis in the house was $325,000 and they sold the house for $456,000. They purchase a new home for $400,000. How much taxable income will they recognize on the sale of the house?

3)Bill buys 10 July IBM 100 calls. Each call costs $5. On the third Friday of July, IBM is selling for $115 per share. If Bill sells the calls for $15 each, how much gain or loss will Bill have? Will Bill own any IBM shares due to these transactions?

4)Same facts as in 3, except Bill exercise his calls. How much gain or loss will Bill have? Will Bill own any IBM shares due to these transactions? If so, what is his basis in the shares?

5)Carol has the following in 2016: $30,000 of short term capital gains, $22,000 of short term capital losses, $32,000 of long term capital gains and $55,000 of long term capital losses. What is Carols net capital gain income or loss for 2016?

6)Joshua and Karen, who file as married filing jointly have the following in 2016: Regular taxable income of $300,000, regular tax liability of $64,175, $90,000 of adjustments and $125,000 of preferences

7)If you were given Incentive stock options and were deciding whether to exercise your options in December of 2016 or January of 2017, from a tax perspective when should you exercise them? Why?