Sales and Disposal of Assets

• After
  reviewing the scenario, explain the impact that the adjusted basis has
  on the calculation of tax liability, and propose at least two (2)
  tax-planning strategies for reducing, eliminating, or deferring the
  payment of capital gains taxes. Also, discuss other alternatives aimed
  at optimizing deductions or reducing taxes, such as selling the property
  to an unrelated third party which, in turn, allows losses to be
  deductible expenses.
• Imagine
  that you are a tax consultant, and a client needs your advice on how to
  reduce his tax liability on the sale of depreciable assets that have
  not been fully depreciated. The client has identified three (3)
  long-term depreciable assets and assumes that he will be able to pay
  capital gains taxes on the profit from their sale. It would be to your
  client’s advantage to treat a taxable gain as long-term capital gain to
  which lower rates apply and a loss is categorized as an ordinary loss,
  which can offset ordinary income. Discuss the treatment of gains and
  losses for Section 1231 and Section 1245 of the Internal Revenue Code,
  and recommend at least three (3) tax-planning strategies that would
  assist the client in reducing his tax liability. Provide support for
  your recommendations.