Question
Astrid exchanges land with a $550,000 FMV that is used in her business for Ramons house, which has a $450,000 FMV. Ramon used the house
Astrid exchanges land with a $550,000 FMV that is used in her business for Ramons house, which has a $450,000 FMV. Ramon used the house personally, but Astrid plans on turning it into a rental house. Astrids basis in the land is $400,000, and the land is subject to a liability of $100,000, which Ramon assumes.
a.What is Astrids realized gain? What is Astrids recognized gain?
b.What is Astrids basis in her new rental house?
c.Does Ramon qualify for like-kind exchange treatment?
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Advances In Quantitative Analysis Of Finance And Accounting - New Series (Vol. 2)
Authors: Lee Cheng Few
1st Edition
9812561641, 9789812561640
