Agnes transfers a four-apartment investment condominium subject to a non-recourse mortgage to Brad. Brad, in return, transfers to Agnes a residential rental apartment building subject to a non-recourse mortgage. Agnes's condo cost $500,000 and she has taken depreciation of $25,000. The amount of the non-recourse debt is $475,000. The fair market value of the condo is $600,000. Brad's apartment building cost $700,000 and has a current fair market value of $600,000. He has taken depreciation deductions of $100,000 and the amount of the non-recourse debt is $600,000. As a result of this exchange transaction Brad has received boot of $125,000. Agnes has received boot of $125,000. Brad has given up boot of $125,000. Agnes has given up boot of $475,000.
Agnes transfers a four-apartment investment condominium subject to a non-recourse mortgage to Brad. Brad, in return, transfers to Agnes a residential rental apartment building subject to a non-recourse mortgage. Agnes's condo cost $500,000 and she has taken depreciation of $25,000. The amount of the non-recourse debt is $475,000. The fair market value of the condo is $600,000. Brad's apartment building cost $700,000 and has a current fair market value of $600,000. He has taken depreciation deductions of $100,000 and the amount of the non-recourse debt is $600,000. As a result of this exchange transaction Brad has received boot of $125,000. Agnes has received boot of $125,000. Brad has given up boot of $125,000. Agnes has given up boot of $475,000.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 80P
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Transcribed Image Text:Agnes transfers a four-apartment investment condominium subject to a
non-recourse mortgage to Brad. Brad, in return, transfers to Agnes a
residential rental apartment building subject to a non-recourse mortgage.
Agnes's condo cost $500,000 and she has taken depreciation of $25,000.
The amount of the non-recourse debt is $475,000. The fair market value
of the condo is $600,000. Brad's apartment building cost $700,000 and
has a current fair market value of $600,000. He has taken depreciation
deductions of $100,000 and the amount of the non-recourse debt is
$600,000. As a result of this exchange transaction
Brad has received boot of $125,000.
Agnes has received boot of $125,000.
Brad has given up boot of $125,000.
Agnes has given up boot of $475,000.
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