QUESTION 43

1. Oscar paid state and local Income tax of 19,000, Sales Tax of 6,000 and real property taxes of 20,000. As a result, oscar can deduct:

   		10,000
   		19,000
   		6000
   		39,000
   		None of the above.

1 points

QUESTION 44

1. George gifts stock to his son with a Fair Market Value of 60,000 and an adjusted basis of 85,000 at the time of the gift. George's son subsequently sells the stock for 45,000. As a result the son will have a:

   		Loss Realized of zero
   		Loss Realized of 40,000.
   		Loss Realized of 15,000.
   		Gain Realized of 45,000
   		none of the above

1 points

QUESTION 45

1. Passive losses are:

   		Limited to Passive income
   		Affected by the at risk limitations
   		may be those that are produced by an activity in which the taxpayer does not materially participate
   		All of the above
   		None of the above.

1 points

QUESTION 46

1. Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the property's adjusted basis at the date of disposition.

   True

   False

1 points

QUESTION 47

1. A realized gain on the sale or exchange of a personal use asset is taxable, but a realized loss on the sale, exchange, or condemnation of a personal use asset is not allowed as a deduction.

   True

   False

1 points

QUESTION 48

1. Adam installed a swimming pool at his home upon a prescription from his physican to help with his arthritis. The pool cost 30,000 and increased value of his home by 18,000. As a result, Adam has a decuctible medical expense (before the % of AGI disallowance) of:

   		30,000
   		12,000
   		18,000
   		zero
   		None of the above.

1 points

QUESTION 49

1. Oscar sells his personal use car to Adam, for 10,000 in the year of sale, and 5 notes of 10,000 each payable annually starting one year after sale. Adams basis in the car at the time of sale was 30,000. When adam receives the first 10,000 payment in the year of sale, he will report:

   		zero gain or loss
   		10,000 gain
   		5,000 gain
   		30,000 gain
   		none of the above