21.

The most common type of "section 1245 property" is tangible or intangible property used in a trade or business. When a taxpayer depreciates this type property in

the course of doing business. :

Group of answer choices

d. amortization and depreciation of the property may not be taken beyond a 5-year period.

b. upon sale, he must recapture all or part of the gain as ordinary income.

a. he may be subject to Section 1231 penalties if depreciation taken during the year is not declared.

c. 6 months before the sale of a property, he must declare the amount of depreciation taken.

22.

For transactions involving stocks and bonds traded over the counter, the holding period begins on the :

Group of answer choices

c. trade date

b. settlement date

d. declaration date

a. Section 1221 date

23.Charlie purchases land in a nearby town in July 2019 for $25,000 and resells the same property for $35,000 in September 2019. Up on the sale of this land

a. a long-term capital gain is realized.

b. a short-term capital gain of $10,000 is realized and recognized.

c. a short-term capital loss of $10,000 is realized but not recognized

d. a long-term capital gain is realized but not recognized.

24.An individual taxpayer Andy purchases a principal residence in July 2015 for $100,000. Andy sells it for $400,00 in July 2019. Which of the following statements about is true?

Group of answer choices

a. Andy has realized gain of $250,000 and recognized gain of $50,000.

b. Andy has realized and recognized gain of $300,000.

d. Andy has realized gain of $300,000 and $50,000 of recognized gain.

c. Andy has realized and recognized gain of $50,000.

25.A taxpayer is permitted to give at total of up to $15,000 per year (in 2018) to any person without any gift tax consequences, regardless of his/her relationship to the recipient(s).

Group of answer choices

True

False