ACC 456 STUDY Extraordinary Success/acc456study.com ACC 456 STUDY Extraordinary Success/acc456study. | Page 23

transfers the asset to Tim in exchange for $94,000 cash and a new
automobile with a $50,000 FMV to be used by Tracy for personal use;
Tim assumes the $75,000 liability. Determine the amount of Tracy’s
LTCG or LTCL.
I:5-43
Marginal Tax Rates. Mr. and Mrs. Dunbar have taxable income of
$260,000 without considering the following sales. Consider the
following independent cases where capital gains are recognized and
determine the marginal tax rate for the capital gain in each case.
Ignore the effect of increasing AGI on deductions.
·
CASE A: $10,000 gain from sale of Storm Lake common stock
held for seven months.
·
CASE B: $10,000 gain from sale of antique clock held for six
years.
·
CASE C: $10,000 gain from sale of Ames preferred stock held
for three years.
I:8-51
Personal-Use Casualty Losses. In the current year Ned completely
destroys his personal automobile (purchased two years earlier for
$28,000) in a traffic accident. Fortunately none of the occupants are
injured. The FMV of the car before the accident is $18,000; after the
accident it is worthless. Ned receives a $14,000 settlement from the
insurance company. Later in the same year his house is burglarized
and several antiques are stolen. The antiques were purchased a
number of years earlier for $8,000. Their value at the time of the theft
is estimated at $12,000. They are not insured. Ned’s AGI for the
current year is $60,000. What is the amount of Ned’s deductible
casualty loss in the current year, assuming the thefts are discovered in
the same year?