Basic Federal Income Taxation: Property Transactions: Computation of Gain and Loss Realized

This lesson is best used after studying Federal Income Taxation: Property Transactions, in class. The lesson includes problem sets to work through, allowing you to apply the Code and Regs. to a variety of situations involving the computation of gain and loss realized under Internal Revenue Code §§ 1001, 1011-1016.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Explain how to compute basis in a purchase where a commission is paid.
2. Explain how to compute gain and loss realized on the sale of property.
3. Explain how to compute basis on property gifted from a decedent.
4. Distinguish basis received in a gratuitous transfer from a decedent and living individual.