Q3)

P1)

Which of the following is CORRECT regarding the amount of property that may be expensed under 179?

A. The amount cannot exceed the total amount of taxable income derived from the active conduct of any trade or business during the tax year. B. The amount cannot exceed the total amount of adjusted gross income reported by the taxpayer. C. The amount cannot exceed the total amount of self-employment income reported by the taxpayer.

P2)

Recaptured 1245 gain is taxed in 2021 at a maximum regular tax rate of:

A.20 percent. B.25 percent. C.37 percent.

P3)

Which one of the following statements is CORRECT concerning the amount that would be subject to 1250 depreciation recapture for an office building that was placed into service in 2000 and was sold in 2021?

A. Section 1250 ordinary recapture gain would be equal to the total gain. B. Section 1250 ordinary recapture gain would be equal to all depreciation taken on a straight-line basis. C. Since depreciation is required to be straight-line, there would be no 1250 ordinary recapture gain.

P4)

Personal property with a seven-year recovery period was purchased by a taxpayer in 2010. The property was used in a trade or business and depreciated using MACRS. If the property is sold at a gain, the gain is first reported on which part of Form 4797?

A. Part I. B. Part II. C. Part III.