Taxpayer wants to exchange blackacre under sec 1031. Which of the following properties is not considered like-kind to taxpayer's blackacre? O Apartment Complex O Building O Land O Beef Cattle QUESTION 2 Taxpayer is working to start a new business. In November of 2021 he paid $35.000 of start-up expenses and $6,000 of organizational costs. Taxpayer's business started on 01.01.2022. What amount can taxpayer deduct as organizational expenses on his 2021 tax return for these expenses O $0 $6.000 0 $12,066 $10.000 QUESTION 5 Taxpayer and spouse give $50,000 to each of their four grandchildren during the year. What amount of this gift is potentially taxable to taxpayer and spouse? O $90,000 O $150,000 O $50,000 O $80,000 QUESTION 6 Property can pass out of a taxpayer's estate with an unlimited exclusion to which other party? O Children Dogs Grandchildren O Spouse ho QUESTION 7 Taxpayer, who owns a wine bar, purchases a piece of equipment from the bar owner next door for $50,000. The equipment is placed in service during the third quarter of the year. Taxpayer also purchases a warehouse to store her product for $600,000. The warehouse is placed in service in November. What amount is taxpayer's deduction for regular depreciation in year 1? O $1.926 $51.926 O $50.000 $650.000 QUESTION 8 Taxpayer places equipment into service during the year with basis of $2.725.000 Additionally taxpayer places land and a building into service during the year with basis of $500,000. Taxpayer has book income before depreciation of $200,000 and taxable income before depreciation of $300.000. What amount of section 179 expense is taxpayer eligible to take? O $300.000 D$200.000 O $275,000 0 $950.000 QUESTION 9 Which of the following is not an allowable cost recovery system? O Recapture O Recapture O Depreciation Amortization QUESTION 10 Taxpayer places a residential building in service during the tax[year. What is the appropriate depreciable life of this asset? O 27.5 years O 7 years 15 years 0 39 years QUESTION 21 Which of the following is not a requirement for property to be a Sec. 1231 asset? The property is sold by a licensed broker The asset is held for greater than one year The asset is used in an active trade or business The asset is depreciable property or land QUESTION 22 Taxpayer owns four companies as follows: ABC Partnership 52% DEF Partnership 35%. G S-Corporation 75% and Z Corporation 51%. ABC DEF. and Z sell supplies for parties. G is a real estate holding company. Which of the four entities must file a combined report for the Texas Franchise Tax? O ABOG and Z None of the entities is required to file a combined report O ABC and Z only O All entities must file a combined report QUESTION 25 W Which of the following assets is considered real property? O A building O Computer Equipment O A large piece of machinery O A desk