Sally Robbins gifted depreciable business equipment to her brother, John. Which of the following statements with respect to that gift is NOT correct?
a. Sally reports the gift on Form 709 at its current fair market value.
b. John's basis in the property is the same as Sally's adjusted basis at the time of the gift.
c. John must report any gain on his sale of the equipment as Section 1245 recapture (ordinary income) to the extent of the depreciation claimed by Sally, whether or not he uses the property for business purposes.
d. Sally must report gain on her Form 1040 equal to the difference between the value and adjusted basis of the property, or the total depreciation she claimed, whichever is less.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sally Robbins gifted depreciable business equipment to her brother, John. Which of the following statements with respect to that gift is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
What can communicators do to ensure facts, rather than vague impressions, are shared?
Answers (1)
The Network Time Protocol service can be used to synchronize computer clocks. Explain why, even with this service, no guaranteed bound is given for the difference between two clock
Answers (1)
Calistoga Produce estimates bad debt expense at 0.60% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $487,000 and $1,520 respectively, at December 31, 2020.
Answers (1)
Once Mary's yearly health expenses are greater than $1,000 her insurance company starts footing the bill (or part of the bill). She has an out of pocket limit of $10,000. How much must Mary pay before her insurance company begins paying the bill?
Answers (1)
Jack and Jill have just had their first child. If college is expected to cost $150 comma 000 per year in 18 years, how much should the couple begin depositing annually at the end of the next 18 years to accumulate enough funds to pay 1 year of
Answers (1)
New Questions in Business
Which of the following characteristics lead to a downward-sloping demand curve?
Answers (1)
Suppose recent changes to immigration laws have decreased decreases the supply of immigrant labor, increasing increasing wages in manual labor occupations. how might this affect the market for construction
Answers (1)
Firm P, a noncorporate taxpayer, purchased residential realty in 1985 for $1 million. This year it sold the realty for $450,000. Through date of sale, Firm P deducted $814,000 accelerated depreciation on the realty.
Answers (1)
The checking account of a small healthcare business pays interest each day the balance in the account exceeds $1,000. The bank credits the account with the accumulated interest at the end of each month. How should the interest income be posted?
Answers (1)
A house wife invest RS 5000 at 5.5% her husband wishes to invest enough money to have 8% interest so that their total interest will amount to RS 1000 in a year the amount invested by husband is
Answers (1)