Capital gains tax

partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership: Harry: Cash Land Totals Basis Fair Market Value $ 30,000 $ 30,000 100,000 120,000 $ 130,000 $ 150,000 Sally: Equipment used in a business Totals 200,000 $ 200,000 150,000 $ 150,000 a. How much gain or loss will Harry recognize on the contribution? b. How much gain or loss will Sally recognize on the contribution? c. How could the transaction

and Capital Gains with respect to share dealings. The Assessment year of the present case is 2005-06. Facts: a. The assessee was a trader in shares. The assessee was trading in two segments in stock exchange, viz., cash segment and Future and Options (F&O) segment. Admittedly, the assessee had two different portfolios one as investment and another as stock-in-trade. While profits from trading in cash market upto September 30, 2004, was offered to tax under the head 'Business ', similar gains subsequent

TAX STRUCTURE IN INDIA Introduction: India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax. The Tax Structure in India is quite strong and follows the financial year. The taxation under the tax structure in India is applicable for any kind of income pertaining

Question 2 Which of the currently tax policies impact on housing affordability: There has recently been some discussion about the lack of housing affordability and the effect that tax policy has on house prices. I have identified 4 tax policies and have discussed how each affects housing affordability and whether changing any of these taxes could cause housing to become more affordable. 1. Negative gearing Negative gearing allows individuals to offset losses made from a property against ones income

ISSUE What are the tax effects of forming a partnership in regards to cash and property contributions? CONCLUSION There are various tax consequences that apply when transferring a property to a newly formed partnership. Some of the issues are the non-recognition rules that apply under IRC 721, basis concerns that discussed under IRC 722 and holding period that are discussed under IRC 1233. Under the general rule in IRC § 721(a), a partnership or its partners recognize no gain or loss in the case

True / False – Chapter 13 Maria defers $100 of gain realized in a section 351 transactions. The stock she receives in the exchange has a fair market value of $500. Maria 's tax basis in the stock will be $400.
True 
 Control as it relates to a section 351 transaction is strictly defined to be 80 percent or more of the voting power of the stock of the corporation to which property is transferred.
 False 
 The definition of property as it relates to a §351 transaction includes money. True 
 To meet

an essay in which you recommend the most advantageous tax filing status for Spouse A and Spouse B on their federal tax return. The filing statuses available to the taxpayer couple are married filing jointly, and married filing separately. The best filing status for Spouse A and B is married; filing jointly. Both spouse A and B have separate income for the year and so could file separate returns but they would also have to file at a higher tax rate schedule because their income is not combined. They

married filing jointly. For this taxpayer couple the recommended filing status is married filing jointly. The tax rates would be higher if they filed separately. Additionally, some deductions (e.g. tuition and student loan interest), credits (e.g. Earned Income Credit) and exclusions would not be allowed if they filed separately. Since they sold a personal residence during this tax year, they will be able to exclude up to $500,000 profit from the sales as joint filers rather than only up to $250

ACA1 Tax Treatments for Individual Returns (task 302.2.3) A. Recommended Tax Filing Status The IRS has five tax filing statuses for taxpayers to choose from: Single Married Filing Jointly Married Filing Separately Qualifying Widow(er) with Dependent Child Head of Household The couple should choose to file their taxes as Married Filing Jointly. Spouse A and Spouse B can claim 3 dependent exemptions for their 3 children since they are under the age of 19 (a 10 year old, a high school Junior, and

He will get a charitable income tax deduction for the amount of the present value of the remainder interest passing to charity which is $347,930 as per the above calculation in the year of donating property, but it will be limited to 30% of his AGI with a carry over for the next five years to reduce his future taxable income as the property that he distributed is a capital gain property. Since Mrs. Rich is the only income beneficiary of the annuity amount, there is no taxable gift as it is protected