Question 1

Discuss the tax consequences of listed property being used for the production of income compared to being used in a trade or business.

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Question 2

Discuss the difference between the half-year convention and the mid-quarter convention.

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Question 3

Discuss the reason for the inclusion amount with respect to leased automobiles.

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Question 4

On June 1,2010,Gabriella purchased a computer and peripheral equipment (five-year property)for $25,000.She used the assets 40% for business,50% for the production of income,and 10% for personal use.These are the only assets Gabriella purchased during the current year.Determine her total cost recovery deduction for the current year.

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Question 5

Discuss the beneficial tax consequences of an SUV not being classified as a passenger automobile.

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Question 6

Discuss the criteria used to determine whether a building is residential or nonresidential realty.Also explain the tax consequences resulting from this determination if the property is placed in service in 2010.

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Question 7

Rick purchased a uranium interest for $10,000,000 on January 3,2010,when recoverable reserves were estimated at 200,000 units.A total of 10,000 units were extracted in 2010 and 7,000 units were sold in 2010.Gross income from the property was $2,800,000 and taxable income without the allowance for depletion was $1,000,000.Determine the depletion deduction for 2010.

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Question 8

Discuss the effect on the cost recovery method of a taxpayer election if the uniform capitalization rules apply to a farming business.

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Quiz 8: Depreciation,cost Recovery,amortization,and Depletion