questions 1-4

Which of the follo he following statements concerning the taxation of asser Ordinary income may qualify for a special 0% rate. is are always taxed at the taxpayers marginal tax rate. Capital gains are always taxed at the taxpaver Eins on Section 1231 assets are taxed at ordinary rates, and losses are taxed at 6. Gains on Section 1231 capital rates. d. Gains on Section inson Section 1231 assets are taxed at long-term capital gains tax rates, and losses are taxed at ordinary income tax rates. uch of the following statements correctly identifies when income is subject to tax? a Capital gains must be realized before they can be recognized on a tax return. b. Realization occurs when the gain on an asset is reflected on the taxpayer's return. c. As a general rule, realized gains are not recognized unless a provision in the IRC requires recognition. d. Recognition occurs when an asset has been sold or exchanged. 3. All of the following are included in the amount realized upon disposition of an asset EXCEPT: a. The cash received. b. The fair market value of property received in the exchange. c. A transfer of obligation to pay debt from the seller to the buyer. d. The taxpayer's adjusted basis. 1: Christopher purchased a home in Connecticut three years ago for $300,000. He had been working in Connecticut for the past 10 vears. Yesterday, his employer decided to transfer him to the San Diego, California branch, effective next month. Unfortunately, the real estate market has weakened over the past few years, and Christopher is only able to sell his home for 0,000. Which of the following statements correctly identifies his tax consequences of the sale: a. Christopher is not permitted to deduct the loss on his income tax return. Christopher's loss will be reflected as a long-term capital loss on his tax return, Christopher's lose will be reflected as a short-term capital loss on his tax return, Christopher will recoenize an ordinary loss of 530,000