Assume the following exchange meets the necessary requirements and thus qualifies for tax purposes as a “like-kind exchange.” Captain Kirk exchanges land that is used in his business and has a FMV of $610,000 for Spock’s building, which has a FMV of $325,000. Captain Kirk’s basis in the land is $305,000 and Captain Kirk’s land is subject to a liability of $31,000 which Spock assumes. (a) What is Captain Kirk’s recognized gain or loss on this transaction? (b) What is Captain Kirk’s basis in the building? Do NOT GIVE SOLUTION IN IMAGE FORMATE
Assume the following exchange meets the necessary requirements and thus qualifies for tax purposes as a “like-kind exchange.” Captain Kirk exchanges land that is used in his business and has a FMV of $610,000 for Spock’s building, which has a FMV of $325,000. Captain Kirk’s basis in the land is $305,000 and Captain Kirk’s land is subject to a liability of $31,000 which Spock assumes. (a) What is Captain Kirk’s recognized gain or loss on this transaction? (b) What is Captain Kirk’s basis in the building? Do NOT GIVE SOLUTION IN IMAGE FORMATE
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 37CE
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Assume the following exchange meets the necessary requirements and thus qualifies for tax purposes as a “like-kind exchange.” Captain Kirk exchanges land that is used in his business and has a FMV of $610,000 for Spock’s building, which has a FMV of $325,000. Captain Kirk’s basis in the land is $305,000 and Captain Kirk’s land is subject to a liability of $31,000 which Spock assumes.
(a) What is Captain Kirk’s recognized gain or loss on this transaction?
(b) What is Captain Kirk’s basis in the building?
Do NOT GIVE SOLUTION IN IMAGE FORMATE
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT