Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 18MCQ
Which of the following is not a capital asset to an individual taxpayer?
- Stocks
- A 48-foot sailboat
- Raw land held as an investment
- Inventory in the taxpayer's business
- All of the above are capital assets
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
1. According to the article by Tony Dimitriadis (see Supplementary Study Materials Folder), whether an amount received by a taxpayer following the sale of a capital asset (e.g. real estate) will be treated as capital or income depends largely on:
Select one:
The intention of the taxpayer when the property was first acquired
The degree of renovation and development carried out on the property
Whether the taxpayer held on to the property, rather than making a short term profit
Whether the taxpayer is an individual or a business taxpayer
All of the above are important considerations
2. Select the INCORRECT statement from the following options:
Select one:
The Cost Base of Personal Use Assets excludes Element 3 expenses (Ownership Costs)
An antique vase bought at a garage sale for $200 and sold for $20,000 is exempt from CGT
The indexation rate for assets acquired on 2 February 1986 was 41.4
All costs incurred under Element 3 (Ownership Costs) should be included in the indexation…
Which of the following is not true about capital assets?
a.Individual taxpayers may deduct net capital losses of up to $3,000 per year.
b.Real property used in a trade or business is not a capital asset.
c.Net long-term capital gains are granted preferential tax treatment.
d.Shares of stock held for investment are capital assets.
e.Capital losses may be carried back for 3 years to offset capital gains in those years.
Which of the following statements is correct?
When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished.
When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished.
When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized.
When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction.
All of the above are correct.
Chapter 1 Solutions
Income Tax Fundamentals 2020
Ch. 1 - Prob. 1MCQCh. 1 - Which of the following tax forms are used by...Ch. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Which of the following is a deduction for adjusted...Ch. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Joan, who was divorced in 2019, had filed a joint...Ch. 1 - Prob. 10MCQ
Ch. 1 - Prob. 11MCQCh. 1 - Margaret, age 65, and John, age 62, are married...Ch. 1 - Prob. 13MCQCh. 1 - Robin and Howie file married filing jointly and...Ch. 1 - Prob. 15MCQCh. 1 - Prob. 16MCQCh. 1 - Taxpayers who are blind get the benefit of: An...Ch. 1 - Which of the following is not a capital asset to...Ch. 1 - Jayne purchased General Motors stock 6 years ago...Ch. 1 - Prob. 20MCQCh. 1 - Shannon, a single taxpayer, has a long-term...Ch. 1 - Prob. 22MCQCh. 1 - Access the Internet and go to www.irs.gov and...Ch. 1 - Prob. 24MCQCh. 1 - List three major purposes the tax system is meant...Ch. 1 - Jason and Mary are married taxpayers in 2019. They...Ch. 1 - Leslie is a single taxpayer who is under age 65...Ch. 1 - In 2019, Lou has a salary of $53,300 from her job....Ch. 1 - Diego, age 28, married Dolores, age 27, in 2019....Ch. 1 - Ulysses and Penelope are married and file separate...Ch. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Christine is a single 50 -year-old taxpayer with...Ch. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Determine from the tax table in Appendix A the...Ch. 1 - Prob. 15PCh. 1 - Melissa and Aaron are married taxpayers with...Ch. 1 - Jessica and Carl were married on July 1,2019. What...Ch. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - What is the total dollar amount of personal and...Ch. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - Prob. 25P
Additional Business Textbook Solutions
Find more solutions based on key concepts
Bank loan; accrued interest LO132 On October 1, Eder Fabrication borrowed 60 million and issued a nine-month, ...
Intermediate Accounting
This year, Prewer Inc. received a 160,000 dividend on its investment consisting of 16 percent of the outstandin...
Principles Of Taxation For Business And Investment Planning 2020 Edition
Dave Nelson recently retired at age 48, courtesy of the numerous stock options he had been granted while presid...
Managerial Accounting: Creating Value in a Dynamic Business Environment
How would the decision to dispose of a segment of operations using a split-off rather than a spin-off impact th...
Advanced Financial Accounting
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (4th Edition)
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash...
Principles of Accounting Volume 1
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following statements with respect to the taxation of capital gains is not correct? A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset. B. Gains resulting from dispositions of personal use capital assets are subject to tax. C. When an individual sells shares in a Canadian small business corporation, any resulting capital gain can be deferred if the proceeds are reinvested in shares of another Canadian small business corporation. D. When a part of a group of identical securities is sold, the adjusted cost base of the shares sold must be based on the average cost of the group.arrow_forwardRIGHT OR WRONG For taxation purposes, the house and lot as family home of taxpayer is his ordinary asset. When inventory of goods are sold at price lower than cost, the seller has capital loss. When production machine of the business is sold at a mark up on cost, the seller has ordinary business income. When personal valuable necklace of the taxpayer is stolen, the taxpayer has capital loss. Capital gain tax is an income tax. The mark up on the sale of an equipment used in business activities is reportable in 1701 tax return of the sole owner of such business. 7. The sole proprietor sold for P500,000 its inventory with carrying cost of P400,000. The sale will result to BUSINESS INCOME OF 100k CAPITAL GAIN OF 100k BUSINESS INCOME OF 500k CAPITAL GAIN OF 500k 8. The investment in bond was sold by the resident citizen at mark up of P200,000 on carrying cost. If the bond has maturity of 5 years, the mark up on cost is EXEMPT FROM INCOME TAX TAXABLE INCOME BUSINESS INCOME…arrow_forwardWhich of the following is a capital asset? Account receivable Copyright created by the taxpayer Copyright (held by the writer) Business inventory A taxpayer's residencearrow_forward
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Depreciation -MACRS; Author: Ronald Moy, Ph.D., CFA, CFP;https://www.youtube.com/watch?v=jsf7NCnkAmk;License: Standard Youtube License