BUS123A Midterm 3 Study Notes

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General Guidelines for Exam #3 Review of Topics for Examination #3: Chapter14: Determination of basis for: 1.property received as a gift 2.inherited property 3.property converted from personal us... e to business Installment sales: Qualifying transactions Benefits of using the installment sales method Calculation of taxable gain Wash sales: Be able to recognize a wash sale Be able to apply the rules related to wash sales including calculating basis Be able to determine the basis of stock sold applying appropriate rules Chapter15: Like­kind exchanges: Eligible property Calculation of gain realized, recognized, and calculation of basis Delayed exchanges—general rules Involuntary conversions: Application of rules for casualty gains and condemnation gains Appropriate replacement property Time period for replacement Chapter16: Identifying capital assets Determining long­term or short­term status Application of rules related to individual & corporate taxpayers Tax rates Netting process Determining the amount of gain taxed favorably Use of net losses Sale of personal use capital assets Identification of stock sold 1244 stock: Qualifications Deducting 1244 losses Advantages of holding 1244 stock 1202 stock: Qualifications General rules Options: Be able to determine when a gain or loss is recognized and be able to determine the character of the gain or loss from the buyer’s perspective and from the seller’s perspective Chapter17: 1231—general treatment Identifying 1231 assets Determining the character of the gain or loss Application of the look­back rule Depreciation recapture: Determine when the recaptures rules are used Identifying 1245 v 1250 assets Determining the amount of 1245 gain Determining the amount of 1250 gain General knowledge of 291 recapture [Show More]

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