Section 876 IAC 2-12-9 - Federal income taxation of real estateAuthority: IC 25-34.1-2-5
Affected: IC 25-34.1-5
Sec. 9.
(a) The competency and instructional level for subdivisions (1) through (2) is Level 3. The following are concepts of homeownership: (1) Deductions from income for homeowners including the following: (B) Mortgage interest (limited deduction).(2) Sale of personal residence including the following (Students should be afforded practice in performing the various computations associated with taxation of gain on the sale of a personal residence.): (A) Basis and adjusted basis.(B) Determination of gain or loss.(C) Nature of gain or loss.(D) Deferral of taxation on gain ("rollover" provisions).(E) Exclusion of gain by taxpayers over age fifty-five (55).(b) The competency and instructional level for subdivisions (1) through (2) is Level 2. The following are concepts of real estate investments (Students should be afforded practice in performing the basic tax computations associated with operating or selling investment real estate, but fact situations should be simple and uncomplicated.): (1) Real estate operations including the following: (B) Determination of net (taxable) income as follows: (i) Gross rental income received.(ii) Deductions for collection losses and operating expenses.(iii) Deduction for depreciation.(2) Sale of investment real estate including the following: (A) Determination of gain or loss.(B) Taxation of gain or loss.(c) The competency and instructional level for subdivisions (1) through (4) is Level 1. The following are concepts of special rules: (1) Installment sales (basic concept).(2) Like-kind exchange (basic concept).(3) Vacation homes (basic rules).(4) Office in home (basic rules).Indiana Real Estate Commission; 876 IAC 2-12-9; filed Dec 1, 1989, 5:00 p.m.: 13 IR 664; readopted filed Jun 29, 2001, 9:56 a.m.: 24 IR 3824; readopted filed Jul 19, 2007, 12:57 p.m.: 20070808-IR-876070067RFA