Question
In 2023, Sasha and Peter entered into a 1031 like-kind exchange. Sasha exchanged an apartment building in Washington for Peter's apartment building in Oregon. Sasha's
In 2023, Sasha and Peter entered into a 1031 like-kind exchange. Sasha exchanged an apartment building in Washington for Peter's apartment building in Oregon. Sasha's apartment building had a fair market value of $650,000 and an adjusted basis of $400,000. A $150,000 mortgage also encumbers Sasha's apartment building which Peter will assume. Peter's building has a fair market value of $500,000 and an adjusted basis of $200,000.
- What are Sasha's and Peter's realized and recognized gains and/or losses on the exchange?
- What are Sasha's and Peter's bases in the new buildings acquired?
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
