A taxpayer purchased a forklift for use in the taxpayer's business for $20,000 on January 1 of the current year. The taxpayer sold the forklift for $22,000 on June 1 of the current year. What is the taxpayer's Section 1231 gain as a result of the sale?

Gold Corp. purchased all the assets of a sole proprietorship, including the following intangible assets:

• Goodwill: $50,000
• Covenant not to compete: 13,000

For tax purposes, what amount of these purchased intangible assets should Gold amortize over the specific statutory cost recovery periods?

A taxpayer wants to deduct the cost of a seven-year asset placed in service this year. The cost qualifies for the Section 179 election to expense assets. Which of the following statements is most accurate regarding the immediate expensing of this asset versus the depreciation of this asset over seven years?

Per IRS tax or MACRS depreciation, _____ is never used for calculation purposes.

Under the MACRS method of depreciation for property placed in service after 1986:

Of the following conditions, which must be satisfied for a taxpayer to expense in the year of purchase under IRC 179, the cost of new or used tangible depreciable personal property? A) The property must be purchased for use in the taxpayer’s active trade or business B) The property must be purchased from an unrelated party.