1. Arthur and Marilyn, married filing jointly, and both over 65 years of age, have no dependents. Their 2017 income tax facts are:

Arthurs wages $165,000

Marilyns wages 33,000

Short-term capital gain 36,000

Long-term capital loss (41,000)

What is their taxable income for 2017?

2. Gino had the following transactions during 2017: a painting held for two years and sold at a gain of $85,000; 100 shares of Gray stock held six months and sold for a loss of $6,000; 50 shares of Yellow stock held 18 months and sold for a gain of $36,000. Gino also had $264,000 of taxable income from other sources than these property transactions. What is Ginos net capital gain or loss and what is his taxable income?

3. Residential real estate was purchased in 2014 for $375,000, held as rental property, and depreciated straight-line. Assume the land cost was $75,000 and the building cost was $300,000. Depreciation totaled $34,089. The building and land were sold on June 10, 2017, for $690,000 total. What is the tax status of the property, the nature of the gain from the disposition, and is any of it 1250 depreciation recapture gain or unrecaptured 1250 gain?

4. A business machine purchased April 1, 2015, for $108,000 was fully depreciated in 2015 using 179 immediate expensing. On August 15, 2017, the machine was sold for $77,000. What is the amount and nature of the gain or loss from disposition of the machine?

5. A business machine purchased February 10, 2016, for $72,000 was fully depreciated in 2016 using 179 immediate expensing. On September 15, 2017, the sole proprietor who owned the machine gave it to his son. On that date, the machines fair market value was $63,000. The son did not use the machine in business or hold it as inventory and the machine was sold on November 22, 2017, for $48,000.What is the amount and nature of the gain or loss from disposition of the machine? Where is it reported in the sons tax return?

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