Question
25.Which of the following scenarios is a sale under threat of condemnation? A. Reese received a notice from the health department that unless he connects
25.Which of the following scenarios is a sale under threat of condemnation?
A. Reese received a notice from the health department that unless he connects his rental property to the city sewer system, the property will be condemned. He sold the property "as is" rather than paying an estimated $28,000 to connect to the sewer system.
B. Oliver heard on the evening news that the state is going to take property to construct another exchange on the interstate. His warehouse is located in the middle of the new exchange. After he contacted a representative of the Department of Transportation, who confirmed the story, he sold the property to the neighboring warehouse owner. 2 like
C. Anisha sold her land in the Everglades the week before the Corps of Engineers announced a new levee was going to be built through part of the property.
D. Rafe sold his main home after he heard from his neighbor about an airport expansion project that was going to take their properties.
26.Each of the following items increases the basis of property received in a partly nontaxable exchange EXCEPT:
A. Cash paid.
B. Cash received in the exchange.
C. Gain recognized on the exchange.
D. Costs incurred in making the exchange
27.Which of the following items increases the basis of property received in a partially nontaxable exchange?
A. Liabilities transferred.
B. Cash paid in the exchange.
C. Cash received in the exchange.
D. Recognized loss on the taxable portion of the exchange
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