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4 Cards in this Set
- Front
- Back
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Adjusted Basis |
The original cost or other basis of property increased by capital improvements and reduced by depreciation and losses. |
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Boot |
Cash or other property not permitted to be received tax-free in certain nontaxable transactions. The receipt of boot will generally cause a realized gain to be recognized to the extent of the lesser of the fair market value of such boot received or the amount of realized gain. |
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Capital Asset |
Generally all assets except inventory, notes and accounts receivable, and depreciable and non-depreciable property used in a trade or business. Capital Assets generally consist of property held for investment and property held for personal use. |
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Involuntary conversion |
Occurs when money or other property is received for property that has been destroyed, damaged, stolen, or condemned. Generally the recognition of any realized gain resulting from an involuntary conversion can, at the taxpayer's election, be deferred if the taxpayer reinvests the proceeds of conversion within a specified period of time in property that is similar or related in service or use. |
