1.What is MACRS and how can we have a difference between Financial Accounting Depreciation and Tax Depreciation MACRS?Is there such a thing as legally having two sets of books for a Company?

2.Discuss each of the following parts of a property transaction when something is sold (investments, real property, equipment......).Explain how you calculate a. and b. before you calculate c.

a.Amount Realized$x,xxx.xx

b.Basis($x,xxx.xx)

c.Realized Gain or loss$xxx.xx

d.Recognized Gain or loss$xxx.xx

3.What kinds of property is included in calculating Capital Gains and Losses?

4.How do we determine what is a Long-Term Capital Gain or Loss from a Short-term Capital Gain or Loss?

5.Are there any special tax rates that apply for Long-term capital gains versus Short Term capital gains?What are Ordinary Gains and how are they taxed?Give some examples of things that are considered ordinary gains..

6.How do we offset Capital gains and losses each year?Bracketing is a process for doing this.What is included in the bracketing process?

HINT:

Long-Term Capital Gains/LTCG

Long-Term Capital Losses/LTCL

Short-Term Capital Gains/STCG

Short-Term Capital Losses/STCL

With the following information, do the bracketing as you explained above and determine what type of gain or loss you would have.

Sold piece of investment land held for two years for a gain of$5,000

Sold stock in a company held for three months for a loss of($2,000)

Sold stock in a company held for five years for a loss($3,000)

Sold piece of investment land held for seven months for a gain of$1,000

7.What is the maximum amount of Capital losses that can be taken by an individual taxpayer per year?(Hint:Include any offsetting amounts of STCLs that are used).

8.Describe depreciation RECAPTURE, the purpose of it.There are two code sections/property types that this applies to.When does Recapture apply?

9.What is Like-Kind Exchanges and describe how it works and why it is so attractive to property owners?

10.Describe in detail what is found in each major section on the Schedule A, Itemized deductions and any limitations that may apply to each of them.