1 Taxpayer owns a parcel of undeveloped real estate that has

1. Taxpayer owns a parcel of undeveloped real estate that has a basis to taxpayer of $200,000. Taxpayer purchased the real estate in 2003 for investment. Taxpayer sold the property to his nephew on January 10, 2017 for $80,000. Is the loss deductible by the taxpayer, and what Code sections are applicable to the transaction? Assume taxpayer has no other capital gains or losses for the year.
a. No amount of the loss is not deductible because the sale is to a related party; Code Section 1001(a) and Code Section 267(a) and (d).
b. The loss is deductible; Code Section 469(c)(7).
c. $3,000 of the loss is deductible in the current year; Code Sections 1001(a) and 1211(b).
d. None of the above answers is correct.  

2. Bob contributed to AlphaBeta Corporation a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Al contributed to AlphaBeta Corporation cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. Which of the following Code Sections is or are relevant to the determination of whether or not Bob recognizes gain or loss on this transaction?
a. Code Section 721.
b. Code Sections 1031 and 1001.
c. Only Code Section 1001.
d. Code Sections 351 and 1001.
3. Bob contributed to AlphaBeta Corporation a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Al contributed to AlphaBeta Corporation cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. In addition to the section or sections that is or are relevant under question 12, above, which of the following Code Sections, if any, is also relevant to the determination of whether or not Bob recognizes any gain or loss on this transaction?
a. Only Code Section 752(b).
b. Code Section 362.
c. Code Section 357(c).
d. None of the above.
4. Bob contributed to AlphaBeta Corporation a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Al contributed to AlphaBeta Corporation cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. Which of the following Code Sections is or are relevant to the determination of Bob’s basis in his AlphaBeta Corporation stock as the result of this transaction?  
a. Only Code Section 722.
b. Only Code Section 1012(a).
c. Code Sections 1012(a) and 358(a).
d. Code Sections 1012(a) and 362.





5. Code Section 162 relates to:
a. deductions in arriving at adjusted gross income.
b. expenses of carrying on a trade or business.
c. capital losses.
d. expenses related to investment property.

6. Which of the following statements is not accurate regarding effective dates in the Internal Revenue Code?
a. Sections of a new tax law may have different effective dates.
b. New provisions of the Internal Revenue Code do not always go into effect immediately upon signing of the law by the President.
c. Some effective dates can precede passage of the act.
d. All are accurate.
7. Subtitle A of the Internal Revenue Code deals with:
a. estate and gift taxes.
b. employment taxes.
c. income taxes.
d. excise taxes.  
8. Intelliconnect provides access to the
a. Standard Federal Income Tax Reporter.
b. The U.S. Master Tax Guide.
c. The Treasury Regulations.
d. All of the above.
9. What areas of taxation are included in the Bloomberg BNA Portfolios?
a. Real estate taxation.
b. Estate and gift taxation.
c. Tax accounting.
d. Income tax deductions.
e. All of the above.
10. Which of the following sections is part of the current Internal Revenue Code of 1986?
a. Code Section 177.
b. Code Section 277.
c. Code Section 377.
d. Code Section 477.

please provide short expl. to your answer.Tk

Solution

Ans 5 b. expenses of carrying on a trade or business.

Ans 6 a. Sections of a new tax law may have different effective dates.

Ans 7 c. income taxes.

Ans 9 c. Tax accounting.