- NY Credits : 3.0
- TX Credits : 3.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 3.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 3.0
The basic IRC Sec. 1001 formula is amount realized less adjusted basis equals gain realized (or loss realized). The gain realized is not necessarily the amount taxed; only the gain recognized is taxable. Tax law, however, provides that all gain realized is to be recognized, unless a specific exclusion applies. This course details the general rules for gain recognition as well as discusses exceptions to the general rule for like-kind exchanges, involuntary conversions, sale of a principal residence, and other various types of transactions.
Upon successful completion of this course, the user should be able to:
determine the adjusted basis of property, calculate the gain or loss upon disposition, and properly report the tax consequences;
apply like-kind exchange rules under IRC Sec 1031 and properly report any taxable gain or loss from such an exchange;
recognize and properly report an involuntary conversion of property;
apply the rules and reporting requirements for the sale of a principal residence; and
recognize the tax consequences of other various types of transactions.