Question 231 pts The exclusion of gain on the sale of a personal residence may be elected only by a taxpayer who has owned three or more residences.

True

False

Flag this Question Question 241 pts The exchange of shares of stock does not qualify for like-kind exchange treatment.

True

False

Flag this Question Question 251 pts The amount of ordinary income recognized on the sale of a Section 1245 asset is limited to the total gain realized on the sale.

True

False

Flag this Question Question 261 pts If insurance proceeds exceed the taxpayer's basis in property destroyed by fire, the taxpayer may be required to recognize a gain.

True

False

Flag this Question Question 271 pts If not entirely used in one sale, the unused portion of the $250,000 exclusion on the sale of a taxpayer's principal residence may be used to reduce the recognized gain on the sale of the taxpayer's next residence.

True

False

Flag this Question Question 281 pts If the proceeds from the sale of property will be collected over a period of more than one year, a taxpayer is required to use the installment method.

True

False

Flag this Question Question 291 pts The condemnation of property is not an involuntary conversion, since it is done pursuant to a government decree.

True

False

Flag this Question Question 301 pts If property is received from a decedent, the taxpayer who receives the property has the same basis in the property as the decedent.

True

False

Flag this Question Question 311 pts There is no limit on the amount of capital losses that an individual may deduct against ordinary income.

True

False

Flag this Question Question 321 pts Taxpayers are allowed to offset net short-term capital losses with net long-term capital gains.

True

False

Flag this Question Question 331 pts The exchange of inventory does not qualify for like-kind exchange treatment.

True

False

Flag this Question Question 341 pts Assuming a taxpayer has no other gains or losses for the year, a loss from the theft of a Section 1231 asset is treated as a capital loss.

True

False

Flag this Question Question 351 pts In a like-kind exchange, relief from a liability is treated as boot.

True

False

Flag this Question Question 361 pts In the current year, the basis of a taxpayer's replacement residence is equal to the cost of the replacement residence less the gain which was deferred on the sale of the old residence.

True

False

Flag this Question Question 371 pts To have the like-kind exchange provisions apply, a taxpayer must make an election.

True

False

Flag this Question Question 381 pts The depreciation recapture provisions are designed to prevent taxpayers from converting capital gains into ordinary income.

True

False

Flag this Question Question 391 pts An artist's painting is not a capital asset when held by the artist.

True

False

Flag this Question Question 401 pts The basis of property received as an inheritance is generally equal to the fair market value at the date of death.

True

False

Question 2 1 pts Perry acquired raw land as an investment 15 years ago. The land cost $60,000. In the current tax year, the land is sold for a total sales price of $120,000, consisting of $10,000 cash and the buyer's note for $110,000. If Perry elects to recognize the entire gain in the year of sale, what is his recognized gain in the current tax year?

$50,000

$60,000

$100,000

$110,000

None are correct.