Cfp Review Income Tax

Front 1

1031 EXCHANGE

Back 1

APPLIES TO EXCHANGE OF PROPERTY HELD FOR PRODUCTIVE USE IN A TRADE OR BUSINESS, OR INVESTMENT PROPERTY OF LIKE KIND. DOES NOT INCLUDE PERSONAL USE PROPERTY. LOSSES ARE NEVER RECOGNIZED.

Front 2

EXLUDED FROM LIKE KIND EXCAHNGE

Back 2

INVENTORY. LIVESTOCK OF DIFFERENT SEX. U.S. FOR FOREIGN. PERSONALTY FOR REALTY.

Front 3

LIKE KIND EXCHANGE COMPUTATION

Back 3

1)GAIN REALIZED. FMV OF PROPERTY RECEIVED PLUS BOOT RECEIVED , MINUS A/B OF PROPERTY GIVEN UP

2)GAIN RECOGNIZED. LESSER OF GAIN REALIZED OR BOOT RECEIVED

3)SUBSTITUTE BASIS: FMV OF PROPERTY RECEIVED MINUS (REALIZED GAIN MINUS RECOGNIZED GAIN)

Front 4

SECTION 121

Back 4

SALE OF PRINCIPAL RESIDENCE. $250K A PERSON. EITHER SPOUSE MEETS THE TWO YEAR OWNERSHIP AND BOTHS POUSES MEET TWO YEAR USE. IF THEY HAVE TO MOVE WITHIN TWO YEARS BECASUE OF UNFORSEEN CIRCUMSTANCES: MONTHS OF USE DIVIDED BY 24 MONTHS TIMES MAX EXCLUSION

Front 5

TAXPAYERS WHO USED THE OLD ONCE IN A LIFETIME SECTION 121 MAY ALSO USE THE NEW EXCLUSION

Back 5

TRUE BUT MUST MEET THE TWO YEAR RESIDENCE RULE

Front 6

DEPRECIATION TAKEN AS A HOME OFFICE IS UNRECAPTURED 1250 INCOME

Back 6

TRUE

Front 7

A WIDOW MAY EXCLUDE UP TO $500K IF RESIDENCE IS SOLD NOT LATER THAN TWO YEARS

Back 7

TRUE

Front 8

SALE OF VACANT LAND MAY BE CONSIDERED A SALE OF PRINCIPAL RESIDENCE IF THE VACANT LAND IS ADJACENT TO THE LAND CONTAINING THE DWELLING UNIT

Back 8

TRUE

Front 9

INSTALLMENT SALE

Back 9

WHEN ONE PAYMENT IS RECEIVED IN YEAR OF SALE, AND A YEAR AFTER. GROSS PROFIT DIVIDED BY TOTAL CONTRACT PRICE TIME AMOUNT RECEIVED DURING YEAR

Front 10

ISTALLMENT METHOD CANNOT BE USED BY

Back 10

DEALERS, REVOLVING CREDIT PLANS AND FOR SALES OF PUBLICALLY TRADED PROPERTY

Front 11

CASUALTY AND THEFT LOSSES

Back 11

ITEMIZED DEDUCTION. SUDDEN, UNUSUAL OR UNEXPECTED. O DEDUCTION ALLOWED UNLESS INSURANCE CLAIM IS FILED. AMOUT OF DEDUCTILE LOSS IS THE LESSER OF DECREASE IN FMV OR ADJUSTED BASIS. AMOUNT OF LOSS IS REDUCED BY ANY INSURANCE REIMBURSEMENT, $100 FLOOR, 10% OF AGI

Front 12

INVOLUNTARY CONVERSIONS

Back 12

OCCUR WEHN MONEY OR OTHER PROPERTY IS RECEIVED FOR PROPERTY THAT IS DESTROYED OF LOST DUE TO CASUALTY, THEFT, OR CONDEMNATION. REPLACEMENT PERIOD FOR PERSONAL IS END OF SECOND YEAR, AND END OF THIRD YEAR FOR REALTY.