DESCRIPTION
This module addresses special sales and exchange transactions. It specifically addresses like-kind exchanges, related-party sales, and installment sales. The module also discusses the asset purchase vs. stock purchase concept. Asset classification and depreciation recapture concepts are reviewed and are reinforced via examples and exercises. The module also contains several comprehensive depreciation recapture case studies.
LEARNING OBJECTIVES
- Analyze the tax consequences of an asset vs. stock sale.
- Review the different classifications of assets.
- Review the concept of depreciation recapture and calculate section 1231 gains and losses, including lookback.
- Discuss the income deferral rules for like-kind exchanges and installment sales.
- Calculate installment sale income and tax basis of property received in a like-kind exchange.
- Calculate the realized and recognized losses for related-party transactions.
