Problem

1.). Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000.

(a) How much if any, was BOB's recognized gain or loss?

(b) How much if any gain or loss, did CARL recognize with respect to the transaction with Bob?

(c) How much if any gain or loss, did CARL recognize with respect to the transaction with his business associate?

(d) How much if any, was BOB's recognized gain or loss, if Carl sold the duplex to the business associate TWO YEARS AFTER the exchange with Bob?

(e) Under the facts of (d) what is Bob's basis in the triplex?

(f) How much if any, was CARL's recognized gain or loss, if Carl sold the duplex to the business associate THREE YEARS AFTER the exchange with Bob?