ACC 307 Federal Taxation

"Sales and Disposal of Assets" Please respond to the following:Explain the impact that the adjustedbasis has on the calculation of tax liability, and propose at least two(2) tax-planning strategies for reducing, eliminating, or deferring thepayment of capital gains taxes. Also, discuss other alternatives aimedat optimizing deductions or reducing taxes, such as selling the propertyto an unrelated third party which, in turn, allows losses to bedeductible expenses.Imagine that you are a tax consultant, and a client needs youradvice on how to reduce his tax liability on the sale of depreciableassets that have not been fully depreciated. The client has identifiedthree (3) long-term depreciable assets and assumes that he will be ableto pay capital gains taxes on the profit from their sale. It would be toyour client's advantage to treat a taxable gain as long-term capitalgain to which lower rates apply and a loss is categorized as an ordinaryloss, which can offset ordinary income. Discuss the treatment of gainsand losses for Section 1231 and Section 1245 of the Internal RevenueCode, and recommend at least three (3) tax-planning strategies thatwould assist the client in reducing his tax liability. Provide supportfor your recommendations.