CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Question
Chapter 12, Problem 20P
a.
To determine
Identify whether the exchanges of property are like-kind exchange.
b.
To determine
Identify whether the exchanges of property are like-kind exchange.
c.
To determine
Identify whether the exchanges of property are like-kind exchange.
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In a community property state, John marries Patricia prior to marriage John owned an SUV during the marriage John bought a Buick. John and Patricia bought a second property with money earned from Patricia's job. Each individual received a motorcycle from Patricia's uncle as a gift. What is community property in this marraige?
Valerie exchanges a building and land (used in her business) for Vanessa’s land and building and some equipment (used in her business). The assets have the following values: Provide the final answers to the questions below. Show your work.
Adjusted Basis
Fair Market Value
Valerie's real property
$9,760
$24,400
Vanessa's real property
$4,880
$19,520
Equipment
$4,392
$7,320
What are Valerie’s recognized gain or loss and basis for the land and building and equipment acquired from Vanessa?
What are Vanessa's recognized gain or loss and basis for the land and building acquired from Valerie?
Given Valerie’s gain/loss and the potential tax implications, do you recommend she makes this exchange?
Paul and Marie Weir moved from a community property state to a common law property state last year. Shortly before their move, Paul used funds from the family bank account to purchase an airplane solely in his name. After they moved, Paul sold the residence that they had acquired during their marriage and used those funds to purchase a new residence of an equivalent value solely in his own name. Paul and Marie entered into a spousal agreement specifying that all household furnishings belong to Marie and the airplane belongs to Paul. Last month, Paul died.
What are the estate planning implications of the Weirs' move from the community property state to a common law property state?
Chapter 12 Solutions
CONCEPTS IN FED.TAX.,2020-W/ACCESS
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Similar questions
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