Part 2: Like-Kind Exchange

Jane Doe and Lisa Marie entered into a qualified exchange of like-kind property. Information about the properties being exchanged is provided below. Answer the following questions on Tab 2 of your Excel Spreadsheet based on the information provided. If the response is zero, enter a 0. Show all calculations.

Data:

Parcel 1 property transferred from Jane to Lisa:

Fair market value of Parcel 1: $300,000

Jane's adjusted basis in Parcel 1: $150,000

Remaining mortgage on Parcel 1 assumed by Lisa: $50,000

Parcel 2 property transferred from Lisa to Jane:

Fair market value of Parcel 2: $250,000

Lisa's adjusted basis in Parcel 2: $170,000

Remaining mortgage on Parcel 2 assumed by Jane: $20,000

Additional cash paid by Lisa to Jane to balance the exchange: $30,000

Questions

1. What is the gain realized by Jane on the exchange?
2. What is the gain recognized by Jane on the exchange?
3. What is Jane's basis in the new Parcel 2 received by Lisa?
4. What is the gain realized by Lisa on the exchange? What is the gain recognized by Lisa on the exchange?
5. What is Lisa's basis in the new Parcel 1 received from Jane?