US Tax Preparation Course for INDIVIDUAL RETURNS (Borderless Accountants) - Understanding Property Basis & Dispositions | EPISODE 60 | Borderless Accountants

This session is an in-depth exploration of Study Unit 9, focusing on the crucial concepts of property transactions, basis, and dispositions. Understanding an asset's basis is fundamental for tax purposes, as it's used to calculate depreciation and determine the gain or loss upon disposition. This video breaks down the complexities of calculating basis in various scenarios, providing the foundational knowledge needed for both real-world application and success on the Enrolled Agent (EA) exam. We'll explore everything from standard cost basis and acquisition costs to special rules for gifts, inheritances, and stock dividends. KEY CHAPTERS 0:00:31 - 0:02:27 Introduction to Property Transactions: Basis and Dispositions 0:02:27 - 0:02:45 Defining Cost Basis and Acquisition Costs 0:02:45 - 0:03:17 Alternative Basis Methods: Fair Market Value & Transferred Basis 0:03:17 - 0:04:49 Special Rules: Inherited Property, Gifted Property, and Like-Kind Exchanges 0:04:49 - 0:05:38 Uniform Capitalization (UNICAP) Rules 0:05:38 - 0:06:01 How Liabilities Affect Basis 0:06:01 - 0:07:04 Allocating Basis When Multiple Assets Are Purchased 0:07:04 - 0:08:48 Calculating Basis for the Sale of Stock 0:08:48 - 0:13:30 Deeper Dive: Section 1031 Like-Kind Exchanges 0:13:30 - 0:17:45 Example 1: Calculating the Basis of a Purchased House 0:17:45 - 0:22:18 Example 2: Calculating the Basis of a Machine for Business Use 0:22:18 - 0:25:25 Practical Insight: Bookkeeper's Role vs. Tax Preparer's Role in Basis Calculation 0:25:25 - 0:27:43 Basis Rules for Gifted Property (Dual Basis) 0:27:43 - 0:35:03 Example 3: Calculating the Basis of a Gifted Rental House 0:35:03 - 0:37:04 Basis Rules for Property Received for Services 0:37:04 - 0:41:52 Example 4: True/False Statements on Basis for Services 0:41:52 - 0:44:10 Example 5: Income and Basis for Property Received for Cash & Services 0:44:10 - 0:45:38 Basis Rules for Inherited Property 0:45:38 - 0:51:32 Example 6: Basis for Jointly Owned Property After a Death 0:51:32 - 0:56:01 Example 7: Basis of Inherited Stock with Alternate Valuation Date 0:56:01 - 1:01:43 Basis Rules for Stock Dividends, Rights, and Splits 1:01:43 - 1:05:52 Example 8: Basis of Stock After a Non-Taxable Stock Dividend 1:05:52 - 1:24:00 Example 9: Calculating Basis Per Share After a Dividend on Identical Stocks Any persons, details, and financial info are fictional and are used for educational purposes only. FOLLOW US: FB page: Borderless Accountants FB group: Borderless Accountants Community Tiktok: ‪@borderlessaccountants‬