Reference no: EM13122623

1.What is the economic and tax policy rationale regarding corporate formation? When will a transfer be deemed a taxable event? How is basis determined? What if assets are contributed to a corporation by a non shareholder such as a government entity?

2.How is tax basis calculated and what effect does tax depreciation have on the computation of the gain or loss on the disposition of a capital asset?

If economic depreciation refers to diminution in value because of obsolescence, physical wear and tear, technological advances in substitute goods, or changes in consumption behavior, tastes and distributional behavior, what accounts for the appreciation in value of the following:

1) Real estate commercial office buildings in New York City or brownstone townhomes on Capitol Hill, NE, Wash. D.C.

2) Residential Coops and Condos in Back Bay Boston, or Cambridge, Mass.

3) American Classic Cars e.g. 1950's GM Chevy Corvette, GM Eldorado Cadillac, or 1960's Ford Mustang.

4) Topps trading cards featuring baseball players Ted Williams, Henry Aaron, Willie Mays or Mickey Mantle.

5) Numismatic Coins such as Civil War silver dollars, two-sided Buffalo nickels, or American Eagle Gold Dollar Coins.

Explain how a sale would be generally treated under the federal tax law for each item listed above.