Taxation of Individuals PROPERTY DISPOSITIONS精选.pdfVIP

chapter 10 Property Dispositions Learning Objectives Upon completing this chapter, you should be able to: LO 10-1 Calculate the amount of gain or loss recognized on the disposition of assets used in a trade or business. LO 10-2 Describe the general character types of gain or loss recognized on property dispositions. LO 10-3 Explain the rationale for and calculate depreciation recapture. LO 10-4 Describe the tax treatment of unrecaptured §1250 gains and determine the character of gains on property sold to related parties. LO 10-5 Describe the tax treatment of §1231 gains or losses, including the §1231 netting process. LO 10-6 Explain common exceptions to the general rule that realized gains and losses are recognized currently. Storyline Summary Taxpayer: Teton Mountaineering Technologies LLC (Teton)—a calendar-year, single-member LLC (treated as a sole pro- prietorship for tax purposes) President: Steve Dallimore Location: Cody, Wyoming y most measures, Teton Mountaineering B Technologies LLC (Teton) has become a success with sponsored climbers summiting the world’s highest peaks, satisfied customers creating brand loyalty, and profitability improving steadily. However, after several years of operation, some of Teton’s machinery is wearing out and must be replaced. Further, because Teton has outgrown its manufacturing capacity, Steve is considering whether to expa