Explain how the historic Crane vs. Commissioner case affected how we determine the amount realized when real estate is sold.
How are selling expenses treated? Are they considered a trade or business expense deducted against income from operations?
Explain the difference between realized gain and recognized gain. On which one do taxpayers pay tax?
If a taxpayer transfers appreciated real estate to a former spouse as part of a divorce settlement, does such a taxpayer recognize gain? Explain citing the relevant Internal revenue Code section and its provisions.