question 13

Question 13 of 65 In an exchange, Terry gave up his fully depreciated business-use dump tru business-use dump truck (FMV $29,500). The exchange was completed on statements is TRUE in regard to Terry's exchange of business-use propert O Terry will not be able to defer a gain on his exchange because, beginning in Terry exchanged business-use property for another property that was also O Beginning after December 2018, Terry will be able to use Section 1031 lik kind exchanges only apply to exchanges of real property exchange treatment to defer his gain property O Terry sold the business-use property in 2018 during the transition perio exchanges Mark for follow up Question 14 of 65. A taxpayer sold a residential rental building for a gain of $15,000. T March 2010. (The sale of land is not included in this question.) No a Before considering the sale, the taxpayer was in the 22% bracket. T in the amaunt and nature of the gain or loss? $ gain taxed a Sally sold land she purchased three months earlier for use in her business. Her cost (and $80,000. She incurred $5,000 in expenses related to the sale. The buyer paid $30,000 cash and assum mortgage on the property. What is the amoun adjusted basis) in the land is O $20,00o, Part I t of her gain, and where on Form 4797 will she report the sale? $20,000, Part ll. O $30,000, Part Ill O $30,00o, Part IV Mark for follow up Question 13 of 65 In an exchange, Terry gave up his fully depreciated business-use dump truck (FMV $25,000) and s4,so0 for a newer business-use dump truck (FMV $29,500). The exchange was completed on January 12,201. Which of the tollowing statements is TRUE in regard to Terry's exchange of business-use property? O Terry will not be able to defer a gain on his exchange because, beginning in tax years after December 031 ike- exchanges only apply to exchanges of real property change treatment to defer his gain. O B ss-use property for another property that was also business-use, so he will be able to use the like-kind eginning after December 2018, Terry will be able to use Section 1031 like-kind exchange treatment on personal and intangbe property O Terry sold the business-use property in 2018 during the transition period for like-kind exchanges that are not real property exchanges Mark for follow up taxpayer sold a residential rental building for a gain of $15,000. The building was purchased and placed in service in arch 2010. (The sale of land is not included in this question.) No other property was sold during the current tax year efore considering the sale, the taxpayer was in the 22% bracket. The depreciation allowed or allowable was $10,635, what the amount and nature of the gain or loss? $ gain taxed at a maximum of % Question 14 of 65