After a casualty gain is calculated on Form 4684

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 1Form 4797 part 1Directly to Form 1040, page 1Schedule 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 destroyedIn 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 yearsdo not carry NOLs back or forwardhave 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 lossemployee business expensecasualty lossmedical expense Which of the following items may create an NOL?schedule C lossMortgage interest on the taxpayer’s main home that is not used for businesscharitable contributionmedical expense

 

Which of the following is business income for purposes of computing an NOL?personal casualty gainstaxable pension incomeactive-participation rental income from Schedule ERoyalty 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 debta passive activity lossan ordinary lossa casualty loss

 

Special provisions under Section 165 include all of the following losses except:

casualty losstheftpassive activity lssesworthless securities

  

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 abovenone 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 risesb. money supply fallsc. money supply remains constantd. 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 increaseb. money supply will decreasec. banks will increase outstanding loansd. the required reserve ratio will drope. none of the above