1.When a taxpa yer disposes of oil, gas, or geothermal
property, part or all of the gain may be recaptured as ordinary income. Explain
how the recapture amount is determined for oil and gas and geothermal
properties.
2. William owns nvo appreciated assets, land and a building,
which have been used in his trade or business since purchased in 1990. If he
sells the two assets to his 100% -owned corporation, will William have to
recognize any ordinary income? Explain.
Leave a Reply