Like-kind exchange

38. On December 15, 2018. Mixum LLC transfers a property (land, building and personal property) to a qualified intermediary in an attempt to consummate a like-kind exchange. The land is sold to an unrelated party on December 27, 2018, for $10,000,000; proceeds are allocable $2,000,000 to land, $7,000,000 to building and $1,000,000 to personal property. Mixums adjusted tax basis immediately prior to the transfer to the intermediary in each asset was as follows: land - $2,000,000, building - $5,000,000 and personal property - $0.

38a) Assume that replacement property is properly identified and exchanged on January 5, 2019 which has the following fair market values so Mixum pays an additional $500,000 and closes on January 15, 2019:

Land $2,500,000

Building $7,000,000

Personal Property $1,000,000

Describe the amount of gain recognized (if any), what year it is recognized and tax basis in each of the replacement properties (i.e. land, building and personal property).

38b) Assume that no replacement property is found and Mixum receives the $10,000,000 of sales proceeds from the qualified intermediary on January 15, 2019.

Describe the amount of gain recognized (if any) and what year it is recognized.