Describe the current tax law for sale of residence

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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

Reference no: EM131713436

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