After a casualty gain is calculated on Form 4684, page 2, for trade or business-use assets held more than one year, where is the gain carried?
Schedule D, part 1
Form 4797 part 1
Directly to Form 1040, page 1
Schedule D, Part II
Gabe sold his business for $120,000 and transferred a building, FMV $80,000; land, FMV $10,000; and furniture and fixtures, FMV $30,000 and adjusted basis $22,500. What is the value of goodwill and ongoing concern?
Which one of the following stat ements regarding tax deferral of a casualty gain is false?
A taxpayer filesForm 1040X to report the taxable gain when gain had been deferred and no replacement property was acquired within the required replacement period.
The replacement period begins on the date the property was damaged or destroyed
In order to postpose the entire gain, the cost of the replacement property must be at least as much as the reimbursement received.
No additional action needs to be taken to postpone the gain from a casualty after completing Form 4684.
partnership and S corporation returns:
carry their NOLs back ten years
do not carry NOLs back or forward
have a choice of carrying their NOLs back three, four or five years instead of the default two years.
carry forward their NOLs 15 years
Which of the following items may not create an NOL?
sole proprietorship loss
employee business expense
Which of the following items may create an NOL?
schedule C loss
Mortgage interest on the taxpayer’s main home that is not used for business
Which of the following is business income for purposes of computing an NOL?
personal casualty gains
taxable pension income
active-participation rental income from Schedule E
Royalty income from Schedule E
A taxpayer who suffers a loss on deposits may deduct the loss as any of the following except:
a nonbusiness bad debt
a passive activity loss
an ordinary loss
a casualty loss
Special provisions under Section 165 include all of the following losses except:
passive activity lsses
When should the alternative minimum tax NOL be computed/
Any time there is an NOL
Any time a casualty or theft loss has occurred
Whenever a taxpayer has any minimum tax adjustments or preference items in the loss year or in any year to which the loss is carried
Whenever the taxpayer’s AGI is greater than $150,000
If married taxpayers file a joint return for all years involved in creating or deducting an NOL
The full amount of the NOL is deducted based on the spouse’s income that incurred the NOL
The full amount of the NOL is deducted based on combined income
both of the above
none of the above
One modification made on Form 1045 schedule b is
No deduction is allowed for personal exemptions
Income is allocated between business and nonbusiness
adjustments and deductions are allocated between business and nonbusiness
income is allocated between taxpayer and spouse
Which of the following statements is true
AMT NOLs are absorbed only by alternative minimum taxable income
AMT NOLs are absorbed by regular taxable income
both of the above
none of the above
1. Suppose Bank A gains 10,000 in reserves that Bank B loses. If both banks are subject to the same required reserve ratio and are currently holding zero excess reserves, then
a. money supply rises
b. money supply falls
c. money supply remains constant
d. checkable deposits fall
2. People decide to hold relatively more currency and relatively less in banks. If banks are holding zero excess reserves, and nothing else changes, it follows that
a. money supply will increase
b. money supply will decrease
c. banks will increase outstanding loans
d. the required reserve ratio will drop
e. none of the above
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