Firm Q exchanged old property with an $80,000 tax basis for new property with a $65,000 FMV.

Question:

Firm Q exchanged old property with an $80,000 tax basis for new property with a $65,000 FMV. Under each of the following assumptions, apply the generic rules to compute Q’s realized loss, recognized loss, and tax basis in the new property.
a. Old property and new property are not qualified property for nontaxable exchange purposes.
b. Old property and new property are qualified property for nontaxable exchange purposes.
c. Old property and new property are not qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q paid $2,000 cash to the other party.
d. Old property and new property are qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q paid $2,000 cash to the other party.
e. Old property and new property are not qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q received $8,000 cash from the other party.
f. Old property and new property are qualified property for nontaxable exchange purposes. To equalize the values exchanged, Firm Q received $8,000 cash from the other party.