Accounting Questions - Homework for accounting, from questions 1-10:
1. Describe the current tax law for sale of residence.
2. Why might a taxpayer wish to elect out of the new exclusion on the sale of residence?
3. Is it possible to defer gain through the purchase of a new residence?
4. Why would the occlusion on sale of residence be prorated?
5. What special rules affect three types of taxpayers?
6. What residence-related matter did the Housing Assistance Tax Act of 2008 address?
7. Why are certain exchanges permitted to be nontaxable?
8. When might a taxpayer prefer a sale over a like-kind exchange that would result in non-recognition of gain under Section 1031?
9. What are two acceptable methods of calculating the basis of new property acquired in a like-kind exchange?
10. Define the following relative to like-kind exchanges:
a. Boot
b. Postponed gain or loss
c. Gain or loss realized
d. Gain or loss recognized