Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
REALTY
|
LAND, IMPROVEMENTS AND FIXTURES |
|
|
PERSONALTY |
AND PROPERTY THAT IS NOT REALTY |
|
|
NO DEPRECIATION DEDUCTIONS FOR INVENTORY |
CORRECT |
|
|
BASIS FOR PROPERTY ACQUIRED |
EQUAL TO COST INCREASED BY ACQUISITION, LEGAL FEES, COMMISSIONS, SALES TAXES, AND IMPROVEMENTS |
|
|
ASSET ACQUIRED BY INHERITANCE IS CONSIDERED LONG TERM |
TRUE |
|
|
MACRS |
APPLIES TO ALL ROCOVERY PROPERTY, NOT LAND OR INTANGIBLES |
|
|
STRAIGH-LINE DEPRECIATION |
1/2 YR CONVENTION IN YR OF ACQUISITON |
|
|
5YR PROPERTY |
CARS,COMPUTERS,COPIERS |
|
|
7 YEAR PROPERTY |
FURNITURE AND UQIPMENT |
|
|
15 YEAR PROPERTY |
LANDSCAPE IMPROVEMENTS |
|
|
RESIDENTIAL REALTY DEPRECIATED STRAIGHT LINE OVER |
27.5 YEARS |
|
|
NONRESIDENTIAL REALTY DEPRECIATED STRAIGHT LINE OVER |
39 YEARS |
|
|
SECTION 179 |
EXPENSE UP TO $500K IN YEAR OF ACQUISITION FOR EQUIPMENT, NOT THINGS HELD FOR THE PRODUCTION OF INCOME. CAN ONLY DEDUCT UP TO INCOME IN CURRENT YEAR. |
|
|
SECTION 1231 |
APPLIES TO PROPERTY THAT IS USED IN A TRADE OR BUSINESS OR HELD FOR THE PRODUCTION OF INCOME. LONG TERM CG OR LOSS. |
|
|
SECTION 1245 |
FOR PERSONALTY THAT IS DEPRECIATED. AMOUNT OF GAIN IS TREATED AS ORDIANRY INCOME. ANY LOSS IS 1231. |
|
|
SECTION 1250 |
UNRECAPTURED INCOME FOR REAL ESTATE. INCOME TREATED AS A LT CG SUBJECT TO A MAX 25% LT CG RATE. |
