What are the carryover provisions for unused capital losses applicable to individuals? Carry back 3 years and forward 5 years Carry back 2 years and forward 20 years Carry forward 20 years only Carry forward indefinitely Jack did not depreciate one of his machines that cost $40,000 because he had net operating losses for the last two years. Which of the following statements is true? (Points : 5) Jacks basis in the asset is $40,000 this year. Jack can deduct three years depreciation in the current year. Jack must file amended returns to claim the depreciation for prior years. If Jack sells the machine for $20,000 this year, he has a $20,000 loss. A corporation sells a machine used for 9 years in its business for $22,000. The machine originally cost $120,000 and was fully depreciated. Its gain will be treated as: (Points : 5) Capital gain Section 1231 gain Section 1245 recapture Section 1250 recapture Which of the following statements concerning the exclusion available under Section 121 for the sale of a personal residence is correct? (Points : 5) This provision allows 50% of the gain from sale of any residence to be excluded from income. A vacation home used as a residence for at least five months of the year will qualify for this exclusion. It is possible for taxpayers to sell their home and qualify for this exclusion every two years. The gain on the sale can be deferred and rolled over into another residence instead of electing the ex