Sales and disposal of assets

Assignment Help Taxation
Reference no: EM13892799

Question: "Sales and Disposal of Assets" Please respond to the following:

After reviewing the scenario, explain the impact that the adjusted basis has on the calculation of tax liability, and propose at least two (2) tax-planning strategies for reducing, eliminating, or deferring the payment of capital gains taxes. Also, discuss other alternatives aimed at optimizing deductions or reducing taxes, such as selling the property to an unrelated third party which, in turn, allows losses to be deductible expenses.

Imagine that you are a tax consultant, and a client needs your advice on how to reduce his tax liability on the sale of depreciable assets that have not been fully depreciated. The client has identified three (3) long-term depreciable assets and assumes that he will be able to pay capital gains taxes on the profit from their sale. It would be to your client''s advantage to treat a taxable gain as long-term capital gain to which lower rates apply and a loss is categorized as an ordinary loss, which can offset ordinary income. Discuss the treatment of gains and losses for Section 1231 and Section 1245 of the Internal Revenue Code, and recommend at least three (3) tax-planning strategies that would assist the client in reducing his tax liability. Provide support for your recommendations.

Verified Expert

Reference no: EM13892799

Compute the taxable income

A. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. Inaddition to four dependent children, they have AGI of $65,000 and itemized deduc-tions

Current calendar year, the partnership''s ordinary income

On December 31 of last year, Henderson gave his son, Norbert, a gift of a 40% interest in a partnership in which capital is a material income-producing factor.  For the curren

Shirley is an actress

Shirley is an actress. She has had various roles in Australian movies as well as guest appearances on many TV serials. During the current year, the following events occurred:

Value method and the prime cost method

Advise Jack and Jill of their income tax consequences arising out of the above information under both the diminishing value method and the prime cost method (if relevant) fo

Contract manufacturer for delectable

Dressing Company. Fresh Seasons uses a weighted average process costing system to account for its salad dressing production. All ingredients are added at the start of the pr

Prepare a proposal for where the revenue would be derived

Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning th

A texas attorney contemplates entering into an employment

A Texas attorney contemplates entering into an employment contract regarding child support arrearage lawsuits with the client based on a (contingency fee) percentage of the am

What tax basis does samson take in the devon net assets

What tax basis does Samson take in the Devon net assets and how does Devon use Section 337 to create a nonrecognition gain transaction when Devon transfers appreciated assets

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd