Which of the following events could result in § 1250 depreciation recapture?
a. Sale at a loss of a depreciable business building held more than one year.
b. Sale at a gain of a business building held more than a year on which straight-line depreciation was taken.
c. Sale at a loss of a depreciable business building held for 9 months.
d. Sale at a gain of depreciable equipment held more than a year on which straight-line depreciation was taken.
e. None of the above.
e
RATIONALE: Section 1250 recapture can only occur if the sale of real property was at a gain and accelerated depreciation was taken or the property was held a year or less. For § 1231 and § 1250 to apply, the building must be held for more than a year. Depreciable equipment is subject to § 1245 depreciation recapture rather than § 1250.
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Answer the following statements true (T) or false (F)
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Negligence concerns harm that
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A top executive of a pharmaceutical company was caught on video laughing while he was kicking and spitting on a disabled homeless man outside of an expensive restaurant
The video went viral on You Tube and major media sites around the world and the executive was identified as Roland Fournier Vice President of Pharma Inc As a result Pharma has fired Fournier. Roland can A) successfully sue Pharma for wrongful dismissal as it was done on his own private time B) successfully sue Pharma as he did not receive progressive discipline C) successfully sue Pharma as it was a one-time act of misconduct and does not justify termination D) all of the above E) sue Pharma but he will lose the case as Pharm Inc. had just cause
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A. Mrs. Leder doesn't recognize income on receipt of the stock, and her tax basis in the stock is $25,000. B. Mrs. Leder recognizes $25,000 of ordinary income on receipt of the stock, and her tax basis in the stock is $25,000. C. Mrs. Leder doesn't recognize income on receipt of the stock, and her tax basis in the stock is zero. D. None of the above is true.