Sometimes Taxpayers Should Structure a Transaction to Avoid the Application

question 34

Multiple Choice

Sometimes taxpayers should structure a transaction to avoid the application of like-kind provisions.Which of the following conditions is likely to cause a taxpayer to avoid like-kind treatment?

• A)expected higher tax rates in the future
• B)less accelerated depreciation provisions expected in the future
• C)a decline in the value of the asset being disposed of
• D)None of the above.

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Definitions:

Cognitive Therapy

A form of psychotherapy that aims to change maladaptive thinking patterns, believing that these can lead to negative emotions and behaviors.

Depression

A condition in mental health defined by a lasting feeling of unhappiness or apathy towards activities, resulting in major interference with daily routines.

Beck

Aaron T. Beck, a psychiatrist known for developing cognitive therapy, particularly for depression.

Overgeneralizing

A cognitive distortion involving broad, sweeping conclusions based on a single event or piece of evidence.