Chapter 5 Property Transactions Capital Gains and Losses
Chapter 5 Property Transactions: Capital Gains and Losses
Learning objectives o Determine the realized gain or loss from the sale or other disposition of property Determine the amount realized from the sale or other disposition of property Determine the basis
Learning Objectives • Determine the realized gain or loss from the sale or other disposition of property • Determine the amount realized from the sale or other disposition of property • Determine the basis
Learning objectives Distinguish between capital assets and other assets Understand how capital gains and losses affect taxable liom Recognize when a sale or exchange has occurred Determine the holding period for an asset when a sale or disposition occurs
Learning Objectives • Distinguish between capital assets and other assets • Understand how capital gains and losses affect taxable income • Recognize when a sale or exchange has occurred • Determine the holding period for an asset when a sale or disposition occurs
Determination of Gain Or Loss Realized gain or oss Amount realized S less the assets adjusted basis
Determination Of Gain Or Loss • Realized gain or loss – Amount realized $ less the assets’ adjusted basis
Determination f (Gains And losses Amount realized consists of money and FMv of property received plus taxpayer's debt assumed by the buyer less costs of sale
Determination Of Gains And Losses • Amount realized consists of money and FMV of property received plus taxpayer’s debt assumed by the buyer less costs of sale