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On December 31, 20X1, cash basis taxpayer Alice sells property and receives a secured note, due in 20X5. The face of the note is $10,000
On December 31, 20X1, cash basis taxpayer Alice sells property and receives a secured note, due in 20X5. The face of the note is $10,000 and the FMV of the note is $8,000. Alice's basis in the sold property is $5,000. Assume Alice elects out of Sec. 453. How much gain does Alice have on sale and in which year does she recognize it?
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In this scenario since Alice is a cash basis taxpayer the gain on the sale will be ...
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
