a)state property taxes
b)state income taxes
d)none of the answers are correct
e)at least 3 answers are correct
3. During 2013, Klecker, Inc. placed in service $2,700,000 of Code Sec. 179 property. How much can Klecker elect to immediately expense in 2013 related to 179?
4. Stock owned by a brother is sold to his sister. The brother’s adjusted basis of the stock is $22,000. He sells the stock for $19,000. The sister sells the stock to an unrelated party for $17,000. What is the gain recognized by the sister
a)Her basis is $17,000. The price she paid for it. She sold it for $19,000. She recognizes a gain of $2,000.
b)Because of the situation, she only has a $1,000 recognized loss
c)She takes the brother’s basis in the stock and recognizes the $1,000 gain
5. Net operating losses can be increased by which of the following?
c)personal property tax paid
6 . Billy Ray owns several parcels of rental real estate (a passive activity), and he actively participates in managing the properties. His total loss from these activities in 2013 is $20,000. Assuming that his AGI for 2013 is $40,000, what is the allowable deduction from these properties in 2013?
7. Ann Jones uses a dry cleaning machine in her business, and it was completely destroyed by fire. At the time of the fire, the adjusted basis was $30,000 and its fair market value was $18,000. How much is Ann’s loss?