All of the Following Taxpayers Can Use the Installment Method

question 11

Multiple Choice

All of the following taxpayers can use the installment method to report gains from the sale of assets except:

• A)A taxpayer who sells a large piece of manufacturing equipment on which he took a Section 179 deduction for the total cost two years ago when purchased.
• B)A taxpayer who sells land he inherited from his father five years ago.
• C)A taxpayer who sells a parcel of land used in his trade or business.
• D)A taxpayer who sells a building used in his trade or business for five years that was depreciated using straight-line depreciation.

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Definitions:

Smoked

Exposed to smoke or treated with smoke, a process often used for preserving or flavoring food.

Crystal Meth

A highly addictive stimulant drug that affects the central nervous system, known formally as methamphetamine.

Tolerance For Caffeine

The adaptation of the body to the effects of caffeine, requiring increased amounts to achieve the same physiological results.

Caffeine Withdrawal

Symptoms that occur when a person suddenly stops consuming caffeine after a period of prolonged intake.