Determine at least one 1 issue that can result when you

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1. Determine at least one (1) issue that can result when you dispose of depreciable business property. Assess the key differences in gain or loss treatment of Sections 1231, 1245, and 1250 assets. Speculate as to why these three (3) classifications are necessary for income tax purposes. Based on the reasons you identified, suggest at least two (2) ways in which the IRS could accomplish the objective by simplifying these three (3) classifications.

2. Property transfer during divorce could potentially result in tax consequence if one (1) spouse sells the property in question to the other spouse at a later date, as opposed to transferring the property as part of the divorce settlement agreement. Recommend at least three (3) tax-planning strategies targeting the reduction or elimination of any tax liability from settlement transfers resulting from divorces. Provide support for your recommendation.

Reference no: EM13482946

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