美国税法2010 Property Transactions.pptVIP

Chapter 13 Property Transactions: Determination of Gain or Loss, Basis Considerations, And Nontaxable Exchanges Determination of Gain or Loss (slide 1 of 7) Realized gain or loss Difference between amount realized from sale or other disposition of the asset and its adjusted basis Sale or other disposition Includes trade-ins, casualties, condemnations, thefts, bond retirements Determination of Gain or Loss(slide 2 of 7) Amount realized from disposition Total consideration received, including cash, FMV of property received, mortgages/loans transferred to buyer Fair market value (FMV): Value of asset determined by arms-length transaction, i.e., amount set by transaction between willing buyer and seller with neither obligated to enter into transaction Reduced by any selling expenses Determination of Gain or Loss (slide 3 of 7) Adjusted basis Original cost (or other adjusted basis) plus capital additions less capital recoveries Determination of Gain or Loss (slide 4 of 7) Capital additions Cost of improvements and betterments to the property that are capital in nature and not currently deductible Determination of Gain or Loss (slide 5 of 7) Capital recoveries Amount of basis recovered through: Depreciation or cost recovery allowances Casualty and theft losses (and insurance proceeds) Certain corporate distributions Amortizable bond premium Easements Determination of Gain or Loss (slide 6 of 7) Recognized gain or loss Amount of realized gain (loss) that is included in (deducted from) gross income Determination of Gain or Loss (slide 7 of 7) Realized gains and losses are not always recognized Realized gains may be deferred or excluded Realized losses may be deferred or disallowed Realized losses from the sale, exchange, or condemnation of personal use assets (e.g., a personal residence) is not recognized for tax purposes Exception - casualty or theft losses from personal use assets In contrast, any gain realized from the sale or other disposition of personal use as