A finished ACC-465 Topic 6 deferral qualification analysis example, testing an exchange with boot, a truck sale and an equipment trade against sections 1031 and 1245, with reorganizations outlined only. Searches like "acc 465 topic 6 assignment example", "acc465 topic 6 sample" and "acc-465 topic 6 example" land here.
What a finished ACC-465 Topic 6 deferral qualification analysis looks like
The finished analysis sets three dispositions side by side. The warehouse, adjusted basis $300,000 and value $700,000, is exchanged for a $660,000 building plus $40,000 in cash. Section 1031 applies to real property held for business use, so of the $400,000 realized gain only the $40,000 of boot is recognized, $360,000 is deferred, and the new building takes a $300,000 basis. The truck cost $50,000, carries $38,000 of depreciation claimed under section 168 and sells for $20,000; its $8,000 gain is ordinary income under section 1245 because it does not exceed the depreciation. The equipment trade-in gets no deferral, since exchanges of personal property no longer qualify under section 1031, and its $10,000 gain is recognized. A closing panel outlines corporate reorganizations under section 368 without working one.
How an ACC-465 Topic 6 example is structured
The analysis asks the same qualifying question of each disposition before computing anything. It opens with an asset register giving cost, depreciation claimed, adjusted basis and value, since every later figure depends on those four columns. The warehouse section tests property type and use, measures realized gain, separates recognized boot from deferred gain and computes the replacement basis two ways as a check. The truck section explains why a sale for cash cannot be deferred and then characterizes the gain, with prior depreciation as the ceiling on ordinary treatment. The equipment section states that section 1031 has been limited to real property for exchanges after 2017 and recognizes the gain in full. A short outline follows on reorganizations, naming section 368 and continuing ownership as the reason deferral is allowed, and leaving their types and requirements to graduate corporate tax coursework. A summary table closes the analysis.
Four columns before any test
Cost, depreciation claimed, adjusted basis and value are set out for every asset first, because gain, recapture and replacement basis all come from them.
Boot recognized, the rest deferred
The $40,000 of cash received in the warehouse exchange is taxed now, and the $360,000 balance of the gain waits inside the new building's lower basis.
Replacement basis checked two ways
The analysis reaches $300,000 by adjusting the old basis and again by subtracting deferred gain from the new building's value, so an arithmetic slip would show.
Depreciation caps ordinary treatment
The truck's $8,000 gain falls within the $38,000 of depreciation previously claimed, so section 1245 treats all of it as ordinary income rather than capital gain.
Personal property no longer qualifies
Equipment traded for equipment once deferred gain under section 1031, and the analysis states that the provision now reaches only real property, recognizing the full $10,000.
Reorganizations outlined, not worked
Section 368 is named as the source of the reorganization definitions, with continuing ownership as the rationale for deferral, and the detail is left to graduate coursework.
Where marks go in ACC-465 Topic 6
Deferral claimed where it no longer exists costs this analysis more than any computation. Papers that run the equipment trade-in through section 1031 are applying a rule that has not covered personal property for exchanges after 2017, and the $10,000 gain disappears on paper only. In the warehouse exchange, forgetting the boot defers the full $400,000 when $40,000 is taxable now. Replacement basis set at the new building's $660,000 value erases the deferred gain entirely, which turns a postponement into an exemption. The truck is where character errors cluster: calling the $8,000 a capital gain ignores the depreciation that produced it. Papers that treat corporate reorganizations in depth at this level spend effort the rubric does not reward and often leave the three dispositions thinly supported. Values stated with no depreciation history make the adjusted basis figures unverifiable.
Get an ACC-465 Topic 6 example written to your instructions
Send the ACC-465 Topic 6 instructions, the grading rubric and the property facts in your case. A custom example is written to them, with each disposition tested for deferral, boot and recapture computed, replacement basis checked, and any reorganization material kept at the level your section asks for, in 24 to 48 hours. The first is free.
ACC-465 Topic 6 questions, answered
Why does boot create taxable gain in an exchange?
Because the taxpayer has cashed out part of the investment. Section 1031 defers gain only to the extent the taxpayer continues in like-kind property, so cash or other property received is recognized up to the amount of realized gain. In the example, $40,000 of cash against a $400,000 gain means $40,000 is taxed and the remainder is deferred into the new building's basis.
What is depreciation recapture?
A rule that treats gain on the sale of certain depreciated property as ordinary income to the extent of the depreciation previously deducted. Section 1245 applies it to equipment and vehicles. The deductions reduced ordinary income in earlier years, so the recovered amount on sale is taxed the same way. In the example the truck's whole $8,000 gain is recaptured, since the depreciation claimed was far larger.
Why are reorganizations only outlined?
Because this course introduces entity taxation, and corporate reorganizations carry their own vocabulary, types and requirements that graduate corporate tax coursework covers in depth. At this level the useful point is the principle: reorganizations defined in section 368 permit deferral when shareholders keep a continuing stake, much as section 1031 permits it when a taxpayer stays in like-kind property. The example states that parallel and stops.