Simmons Corporation purchased a warehouse and land for $250,000 in October 2023.  The purchase price was allocated as follows:  $200,000 for the warehouse and $50,000 for the land.   How will the depreciation expense for 2023 be calculated assuming this is the only asset purchased?

Katrina transferred an apartment building held for investment to Mona for an office building. Katrina will have her office in the building and rent out the rest of it. The apartment building had a mortgage of $10,000 that Mona “assumed” and Mona also paid Katrina $5,000 cash. The apartment building had an FMV of $50,000 and Katrina’s adjusted basis was $30,000. The office building had an FMV of $35,000 and an adjusted basis of $20,000. What is Katrina’s recognized gain on this exchange?

Hillary is a cash-basis calendar-year taxpayer. During the last week of December she received a letter containing a $5,000 check for services rendered. Which of the following is a true statement?

Suvi, Inc. purchased two assets during the current year (a full 12-month tax year). Suvi placed in service computer equipment (5-year property) on August 10 with a basis of $20,000 and machinery (7-year property) on November 18 with a basis of $10,000. Calculate depreciation expense, rounded to a whole number (ignoring §179 and bonus depreciation). The depreciation table value is 20% for 5 year property and 14.29% for 7 year property for the half year depreciation table. The mid quarter table has a value of 15% for third quarter 5 year property and 3.57% for fourth quarter seven year property.

If Lisa requests an extension to file her 2023 individual tax return, the latest she could pay her tax due without penalty is:

The general rule for the basis in the new property in a like kind exchange is 

In the current year, Norbert, an individual, has $50,000 of ordinary income, a Net Short-Term Capital Loss (NSTCL) of $10,000 and a Net Long-Term Capital Gain (NLTCG) of $2,800. From his capital gains and losses, Norbert reports:

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). Wheeler placed in service computer equipment (5-year property) on November 16 with a basis of $15,000 and furniture (7-year property) on April 20 with a basis of $11,000. Calculate depreciation expense, rounding to a whole number (ignoring §179 and bonus depreciation). The depreciation table value is 20% for 5 year property and 14.29% for 7 year property for the half year depreciation table. The mid quarter table has a 4th quarter 5 year value of 5%, and a 2nd quarter 7 year value of 17.85%.

How is residential rental property depreciated?

Barney deducted $4,400 of state income taxes on his tax return last year. This year, he received a state income tax refund of $400. What amount of the refund, if any, should Barney include in his gross income if last year his total itemized deductions exceeded the standard deduction by $350?