1.Gerard has a NLTCG of $20,000 and a NSTCL of $30,000. What is Gerard's 2010 capital loss deduction if Gerard's adjusted gross income for 2010 (before considering capital asset transactions) is $60,000?
a. $30,000.
b. $20,000.
c. $10,000.
d. $3,000.
e. None of the above.
2. Jamie elects to treat the cutting of timber as a sale or exchange under § 1231. Jamie purchased the land for $100,000 and the timber for $125,000 several years ago. On the first day of 2010, the timber was appraised at $220,000 and in September 2010 it was cut and sold for $275,000. What is Jamie's ordinary income from this transaction?
a. $0.
b. $55,000.
c. $95,000.
d. $150,000.
e. None of the above.
3. Which of the following is § 1231 property?
a. Property where casualty losses exceed casualty gains for the taxable year.
b. Property not held for the long-term holding period.
c. Property held for sale to customers.
d. Purchased intangibles.
e. None of the above.
4. An individual has a $40,000 § 1245 gain, a $65,000 § 1231 gain, a $45,000 § 1231 loss, a $30,000 § 1231 lookback loss, and a $90,000 long-term capital gain. The net long-term capital gain is:
a. $155,000.
b. $125,000.
c. $100,000.
d. $90,000.
e. None of the above.
5. Which, if any, of the following is correct regarding § 1245 recapture?
a. It applies to the total amount of depreciation allowed or allowable regardless of the depreciation method used.
b. It applies to gains but not losses.
c. It applies regardless of the holding period of the property.
d. All of the above.
e. None of the above.