ACC547 ACC/547 DQs Week 3 - 19356

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1.What are the similarities and differences between personal property, real property, intangible property, and natural resources? Provide an example of each. Describe the cost recovery method used for each type of asset. The Modified Accelerated Cost Recovery System (MACRS) uses a recovery period method and a convention to depreciate tangible personal property. Why are a recovery period and a convention important in calculating depreciation?

2. What is the difference between an ordinary, capital, and Section 1231 asset? Why is this distinction important? What assets are subject to depreciation recapture? Compare and contrast Section 1245 and Section 1250 recapture.

What is the difference between an ordinary, capital, and Section 1231 asset? Why is this distinction important?

3. What is the rationale for the at-risk and the passive activity law limitations? Do you think the at-risk and the passive activity law limitations should be changed? Why or why not?

4. Compare and contrast active, portfolio, and passive income. Provide an example of each. What types of losses are potentially characterized as passive losses? What are the implications of treating losses as passive?

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Discussion Question 1: What are the similarities and differences between personal property, real property, intangible property, and natural resources? Provide an example of each. Describe the cost recovery method used for each type of asset. The Modified Accelerated Cost Recovery System (MACRS) uses a recovery period method and

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ACC547 DQs Week...