ACCT 553 STUDY Extraordinary Success/acct553study.com ACCT 553 STUDY Extraordinary Success/acct553study | Page 14

How is the $300,000 treated for purposes of federal tax income?
Jane Smith Tax Issues:
(a) What are the different tax consequences between paying down the
mortgage debt and assuming a new mortgage debt for federal income
tax purposes?
(b) Should John and Jane file separate or joint tax returns?
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ACCT 553 Week 4 Homework
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Chapter 14
1. Please describe the concept of "double taxation" and discuss which
entity(ies) are subject to this type of taxation. (5 pts)
2. What type of taxpayers are considered "eligible" taxpayers with
regard to special ordinary loss treatment of IRC Section 1244 stock? (5
pts.)
3. Please describe how the treatment of capital gains(losses) differ for
a C Corporation as compared to an Individual. ( 5 pts.)
4. Please describe the concept of "Depreciation recapture". ( 5 pts.)