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 1
Form 4797 part 1
Directly to Form 1040, page 1
Schedule 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 statements 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 destroyed
In order to postpone 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 years
do not carry NOLs back or forward
have 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 loss
employee business expense
Which of the following items may create an NOL?
schedule C loss
Mortgage interest on the taxpayer’s main home that is not used for business