OK Guys…can we talk basis tonight?
Correct me if I am wrong, but this is what I have for Basis
Nontaxable exchange (like kind)
No boot = no G/L recognized
Boot Received = Basis is FMV @ exchange date
Boot Paid = No G/L recognized unless boot is unlike property with FMV not equal to basis
Boot Received: No loss recognized and realized gain is recognized to the extent of lesser of realized gain or FMV of boot (cash, unlike property, mortgages/liabilities assumed)
Gifted Property
Gain basis = basis of donor + gift taxes paid
Loss basis = lessor of gain basis or FMV at gift date
Very long formula to determin recipient's new basis–Should I try to remember this formula???
Inherited property
Basis = FMV at death date or alternative date (6 months after death) or distribution date if sold within those 6 months
Stock received as a dividend
Included as income when received then Basis = FMV @ distribution date
If not included in income when received then the transaction was nontaxable and the basis of the original stock is allocated between original stock and dividend stock in proportion to their FMVs
Stock rights
If included in income when received then Basis = FMV @distribution date
If NOT included in income when received and allowed to expire–no basis and no loss can be recognized
If NOT included in income when received and exercised or sold the Basis = 0 if FMV is less than or equal to 15% of FMV of stock and the basis of the rights = (FMV of rights/FMV of rights + FMV of stock) * basis of stock
Taxable exchange (nonlike exchange)
G/L = FMV property received – adj basis of old property
Geez Louise–How the heck are we supposed to remember this stuff????
CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!
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