Sara had the following Section 1231 gains and losses for the preceding 5 years

Year	Gains	Losses
2104	15,000	7,000
2015	3,000	35,000
2016	10,000	0
2017	4,000	2,000
2018	35,000	8,000

For 2018 Sarah should report the income and the character of that income on her 2018 tax return

A. Ordinary gain in the amount of $27,000.

B. Capital gain in the amount of $27,000.

C. Ordinary loss and capital gain in the amounts of $8,000 and $35,000, respectively.

D. Ordinary gain and capital gain in the amount of $20,000 and $7,000.

E. Ordinary gain and capital gain in the amounts of $8,000 and $19,000, respectively

Greg and Lisa are married taxpayers. They are filing their tax return and ask you for help. They have already calculated their AGI at $100,000 the following expenditures:

Medical expenses $5,000

Estimated state tax payments 7,500

Property taxes 4,000

Sales paid 2,000

Charitable Donations 2,500

Mortgage Interest (indebtedness $500,000) 8,900

You advise them they should

A. They can claim total of $29,900 on Schedule A.

B. They can claim total of $26,400 on Schedule A.

C. They can claim total of $21,400 on Schedule A

D. They can claim total of $21,900 on Schedule A

E. They should take the standard deduction, which is higher than the itemized deduction amount.

In 2019, Jim exchanges real property in a like kind exchange. Jim receives real property with a fair market value of $78,000 and transfers a property with a fair market value of $70,000 and $8,000 in cash. Jims adjusted basis in the property is $45,000.

18. What is Jims realized and recognized gain?

A. $33,000 Realized and $33,000 Recognized.

B. $33,000 Realized and $0 Recognized.

C. $33,000 Realized and $25,000 Recognized

D. $33,000 Realized and $8,000 Recognized

E. $0 Realized and $25,000 Recognized

19. What is Jims basis in the land that he receives?

A. $8,000

B. $70,000.

C. $78,000

D. $45,000

E. $62,000