1.) The Robinsons, a married couple, purchased their principal residence for $175,000 in September 2008. They have owned and lived in the home since the date of purchase. Over the years, they have made improvements totaling $125,000 to the home. They sold it in July, 2019 for a $950,000. What is their realized gain on sale of the home and how much will they report on their 2019 tax return?

	a.	Realized gain is $775,000; taxable gain is $275,000
	b.	Realized gain is $650,000; taxable gain is $150,000
	c.	Realized gain is $650,000; taxable gain is $400,000
	d.	Realized gain is $825,000; taxable gain is $325,000

2.) The Applebaums purchased a home in San Francisco for $800,000 on July 1, 2018. In 2019, Anne Applebaum took a new job in New York City and the couple put their house on the market. The sold it on August 1, 2019 for $1,200,000. What is their realized gain on sale of the home and how much will they report on their 2019 tax return?

	a.	Realized gain is $400,000; recognized gain is $129,167
	b.	Realized gain is $400,000; recognized gain is zero
	c.	Realized gain is $400,000; recognized gain is $400,000
	d.	Realized gain is $400,000; recognized gain is $264,853

3.) Martin Edwards and Ed Cash married on October 1, 2017. They moved into Martins home, purchased for $400,000 in 2015. Martin had used the home as his primary residence from the date of purchase until his death on March 1, 2018. Ed inherited the home from Martin and continued to use it as his primary residence for the next year. He sold the home on February 1, 2019 for $850,000. What is Eds realized gain on sale of the home and how much will he report on his 2019 tax return?

	a.	Realized gain is $450,000; recognized gain is $116,667
	b.	Realized gain is $450,000; recognized gain is $283,333
	c.	Realized gain is $450,000; recognized gain is $200,000
	d.	Realized gain is $450,000; recognized gain is zero

4.) Kelton owns an apartment complex with an adjusted basis of $750,000 (purchase price $1,000,000; accumulated depreciation $250,000). He was recently approached by an agent for someone he does not know with a proposal to exchange his apartment complex for a nearby office building. The gross value of the office building is about $2,000,000, but it is encumbered by a $500,000 mortgage, yielding a net value of $1,500,000. Kelton find the proposal intriguing. His building is not encumbered by debt. If Kelton decides to make the exchange, what will be his realized gain and how much will he report on his 2019 tax return?

	a.	Realized gain is $750,000; recognized gain is zero
	b.	Realized gain is $750,000; recognized gain is $750,000
	c.	Realized gain is $750,000; recognized gain is $500,000
	d.	Realized gain is $1,250,000; recognized gain is zero

5.) In question 4 above, what will be Keltons tax basis in the office building if he decides to make the exchange?

	a.	$750,000
	b.	$1,000,000
	c.	$1,250,000
	d.	$900,000

6.) Sarah exchanged her apartment complex in Dallas for an apartment complex in Albuquerque. Sarahs tax basis in the apartment complex was $1,000,000. She received an apartment complex worth $1,100,000, plus $250,000 cash. What is her realized gain and how much will she report on her 2019 tax return?

	a.	Realized gain is $100,000; recognized gain is $100,000
	b.	Realized gain is $350,000; recognized gain is $250,000
	c.	Realized gain is $100,000; recognized gain is $250,000
	d.	Realized gain is $350,000; recognized gain is $350,000

7.) Niall exchanged an office building in Rockwall for an office building in Frisco. Nialls tax basis in his Rockwall office building was $775,000. Because the Frisco property was worth more than Nialls Rockwall property, Niall also made a cash payment of $150,000 to the owner of the Frisco building. How much gain will Niall recognize, and what will be his tax basis in the Frisco building?

	a.	$150,000 gain recognized; $775,000 tax basis in Frisco building
	b.	zero gain recognized; $775,000 tax basis in Frisco building
	c.	zero gain recognized; $925,000 tax basis in Frisco building
	d.	$150,000 gain recognized; $925,000 tax basis in Frisco building

8.) Kevin exchanged an apartment complex in Tulsa for an apartment complex in Oklahoma City. Kevins tax basis in the apartment complex was $1,000,000. He received an apartment complex worth $800,000, plus $250,000 cash. What is his realized gain and how much will he report on his 2019 tax return?

	a.	Realized gain is $50,000; recognized gain is $50,000
	b.	Realized gain is $50,000; recognized gain is $250,000
	c.	Realized gain is $250,000; recognized gain is $50,000
	d.	Realized gain is $50,000; recognized gain is zero

9.) Mattie owned an apartment complex in a resort community in Colorado. In February, the complex was destroyed by fire. Matties tax basis in the complex was $1,750,000 and she received insurance proceeds of $2,250,000. She used the proceeds to rebuild on the same site at a cost of $2,100,000. She used the remaining $150,000 to pay off the mortgage on her personal residence. What is her realized gain and how much will she report on her 2019 tax return?

	a.	Realized gain is $500,000; recognized gain is zero
	b.	Realized gain is $500,000; recognized gain is $150,000
	c.	Realized gain is $350,000; recognized gain is zero
	d.	Realized gain is $500,000; recognized gain is $350,000

10.) What will be Matties tax basis in the newly constructed apartment complex?

	a.	$2,100,000
	b.	$1,900,000
	c.	$2,250,000
	d.	$1,750,000

11.) Assume the same facts as in question 10, except that Mattie spent $2,400,000 to rebuild the apartment complex. What will be her tax basis in the newly constructed apartment complex?

	a.	$2,400,000
	b.	$1,750,000
	c.	$1,900,000
	d.	$2,050,000