Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 15, Problem 3DQ
To determine
Explain whether the given transaction qualify for like-kind exchange treatment.
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Students have asked these similar questions
Can the exchange of personal-use property qualify as a like-kind exchange? Why or why not?
Thank you kindly.
Let us assume that we own our personal residence. Onequestion of interest is, “If we depreciate real property (e.g.,land, buildings, etc.), can we depreciate the house in whichwe live?” Depreciation allows for the recovery of the cost ofdoing business. Since, in most cases, we do not “do business”in our own home, our residence is not a depreciableasset. You can, however, think of some instances in which aperson conducts business at home. Can such a person workingat home depreciate the cost of her house?
Pick correct one
Which of the following statements is true?
A. Realized gain and recognized gain are the same and can be used interchangeably.
B. When boot is given in a like-kind exchange, recognized gain is the greater of the boot or the realized gain.
C. To qualify as a like-kind exchange, real property must be exchanged either for other real property or for personal property.
D. If boot is received in a like-kind exchange, the recognized gain cannot exceed the realized gain.
E. Kate exchanges land held as an investment for a investment building owned by Clark. This exchange is not qualified as like-kind exchange because they exchange developed real property with non-developed real property.
Chapter 15 Solutions
Individual Income Taxes
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - LO.2 Melissa owns a residential lot in Spring...Ch. 15 - LO.2 Ross would like to dispose of some land he...Ch. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 11DQCh. 15 - LO.3 Reba, a calendar year taxpayer, owns an...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 15DQCh. 15 - Prob. 16CECh. 15 - Prob. 17CECh. 15 - Prob. 18CECh. 15 - Prob. 19CECh. 15 - LO.3 On June 5, 2019, Brown, Inc., a calendar year...Ch. 15 - LO.3 Camilos property, with an adjusted basis of...Ch. 15 - Prob. 22CECh. 15 - Prob. 23CECh. 15 - Prob. 24CECh. 15 - Prob. 25CECh. 15 - Prob. 26CECh. 15 - Prob. 27PCh. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33PCh. 15 - Ed owns investment land with an adjusted basis of...Ch. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37PCh. 15 - Prob. 38PCh. 15 - Prob. 39PCh. 15 - Prob. 40PCh. 15 - LO.3 Howards roadside vegetable stand (adjusted...Ch. 15 - Prob. 42PCh. 15 - Prob. 43PCh. 15 - Prob. 44PCh. 15 - Prob. 45PCh. 15 - Prob. 46PCh. 15 - What are the maximum postponed gain or loss and...Ch. 15 - Prob. 48PCh. 15 - Prob. 49PCh. 15 - Prob. 50PCh. 15 - Prob. 51PCh. 15 - Prob. 52PCh. 15 - Prob. 53PCh. 15 - Prob. 54PCh. 15 - Prob. 55PCh. 15 - Prob. 56PCh. 15 - Devon Bishop, age 45, is single. He lives at 1507...Ch. 15 - Prob. 1RPCh. 15 - Prob. 2RPCh. 15 - Taylor owns a 150-unit motel that was constructed...Ch. 15 - Prob. 6RPCh. 15 - Prob. 1CPACh. 15 - Susie purchased her primary residence on March 15,...Ch. 15 - Chad owned an office building that was destroyed...Ch. 15 - Prob. 4CPACh. 15 - Marsha exchanged land used in her business in...Ch. 15 - Prob. 6CPACh. 15 - Prob. 7CPA
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Similar questions
- give an example of a situation where someone has loaned an item of personal property to someone, formally or informally.arrow_forwardHow can a taxpayer combine real estate undertakings?arrow_forward1 Under Section 1031 a personal residence or an automobile used solely for personal purposes will qualify for a tax free exchange. T/F perty cannot be used by dealers in real property. T/Farrow_forward
- The following are exclusive property under the system of conjugal partnership of gains, which is not? Property before marriage Inheritance during marriage Property acquired during marriage out of exclusive money Rental income on a property acquired before marriagearrow_forwardWhich of the following are characteristics of tenancy by the entirety (TBE) form of property ownership? More than two people can own property in TBE form. Tenants own property equally regardless of contribution. Each tenant becomes the owner of the other tenant's interest at the other tenant's death. Each tenant can convey their interest without the consent of the other. A) I, III, and IV B) III and IV C) I and II D) II and IIIarrow_forwardSammy exchanges land used in his business in a like-kind exchange. The property exchanged is as follows: Property Surrendered Property Received Adj. Basis FMV Adj. Basis FMV Land $44,000 $60,000 $50,000 $43,000 Cash $ 5,000 $ 5,000 Liability on land $12,000 $12,000 The other party assumes the liability. A. What is Sammy’s recognized gain or loss? Explain your answer. b. What is Sammy’s basis for the assets he received?arrow_forward
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