9- Beth's business purchased only one asset during the current year. It placed in service machinery (7-year property) on December 1 with a basis of $50,000. Calculate the maximum depreciation expense (ignoring Section 179 or bonus expensing)
10- Ilene rents her second home. During 2009, Ilene reported a net loss of $15,000 from the rental. If Ilene is an active participant in the rental and her AGI is $140,000, how much of the loss can she deduct against ordinary income in 2009?
11- What is the tax impact to a taxable corporation or an S corporation when it makes a property distribution to a shareholder?
12- What item(s) affect the tax basis of a shareholder in a taxable corporation?
13- Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $350 in a transaction that qualifies for deferral under Section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?
14- Camille transfers property with a tax basis of $800 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $850 and $350 in a transaction that qualifies for deferral under Section 351. Camille also incurred selling expenses of $100. What is the amount realized by Camille in the exchange
9. If 40% or more of the total assets purchased during the year occurred in the last quarter, then the depreciation is limited to 1/4 of the amount that would normally be allowable. 7 year MACRS property would be 14.29% but the fourth quarter amount is only 3.57% x 50000 = $1785.
Refer to depreciation tables for fourth quarter percentages.
10. Assuming she is a single person and not a married filing separately, and meets all the other rules under passive loss limitation: the AGI limitation for deduction of rental losses is $150,000 less 50% of the excess for AGI over $100,000. The calculation then is $150,000 - 140,000 x 50%) = $5,000. The allowable amount of passive activity loss would be $5,000 and the remaining $10,000 would carryover to a year in which it can be used.
See Part II of the form linked here: http://www.irs.gov/pub/irs-pdf/f8582.pdf
Hopefully it remembered my input.
11. The property distributed from a C Corporation in the ...
Taxes: What is the tax impact to a taxable corporation or an S corporation when it makes a property distribution to a shareholder? and more....