Joe Hall owns a limo business for use in personal service business of transporting passengers to

airports. The limo's adjusted basis is 40k. In addition, Hall owns his personal residence and
furnishings, that together cost him 280k. Hall's capital assets amount to

280,000

Estie Tate is in the real estate business. She purchased a vacant office building for the purpose of
reselling it. Essie's sister, not a real estate dealer, owns a large tract of residential land she purchased
7 years ago as an investment. Winfield Nestar is a tax lawyer. He converted an apt. building into
condo's and is trying to sell them. He also owns a large tract of land that is zoned for business use
and was received in payment for his fees last year. Nestor subdivided this land and is selling it as an
office park. Which of the following will produce capital gain or loss?

Estie's sister subdivision of the residential land into 5 lots and sale to 5 purchasers

Halbert Zweistein is a renowned physicist and Nobel Prize quince who holds numerous patents.
Halbert owns the copyrights to the 75 books he wrote in a long career. He has also collected his
voluminous correspondence, notes, journals, and other papers that he plans to sell to a library in a
major eastern city. Which of the following will result in a capital gain or loss?

The sale of the patents

Mr E, a sole proprietor is in the process of selling his retail store. Based on the following list of assets
used in his business, what is the total amount of E's capital assets? The goodwill is not being
amortized

30,000

"Bear" Wall is a dealer in stocks. She sells them to customers in the ordinary course of business.

"Bull" Street is in business of trading stocks for his own benefit. He buys and sells stock as his sole
means of support and business activity. Which of the following statements are true?

Stocks held by "bear" ar not capital assets, but stocks held by "bull" are capital assets

Helen Chambers owns and manages an apt. building. She also paints seascapes that she exhibits and
sells, and she published several volumes of art criticism for which she owns the copyrights. With the
profits from the books, she acquired stock in a local art supply company. If Helen sold any of the
foregoing property, which would give rise to capital gains or losses?

The stock in the art supply company

Which of the following is a capital asset?

Land held as an investment

Mr. L purchased stock in corp. O in Year 1 for 500. In year 2, Mr. L received a distribution of 200 at a
time when corp. O has no current or accumulated earnings and profits, so it was a nontaxable return
of capital. Mr. L sold his corp. O sock in Year 3 for 700. What is the amount of gain to be reported by
Mr. L?

400

During year 1, Mr. F acquired 100 shares of stock in the ABC corp. for 500. During Year 3 he sold the
stock for 1,000. His adjusted basis in the stock at the time of the sale was 500 and he had no other
capital gains or losses during the year. What is the amount and character of income to be reported
on Mr. F's income tax return for Year 3?

500 long term capital gain

During 2017, Abby sold several shares of stock held for investment. The following is a summary of
her capital transactions during the year.... What is the amount of Abby's capital gain (loss) for 2017?

Long term: 900 Short term: 500