Q6-8

6 Fred owns Rental House A1 (FMV =$300,000,AB=$250,000). Fred exchanges Rental House $1 for Rentat House #2 tFMV =5200.000:AB=5400.000 ) and 5100.000cash. What is Fred's recognized gain or loss on the exchange? What is Fred's basis in Rental House 12 ? What if Fred exchanged Rental House a1 for Rental House a3 (FMV =$275.000;AB=$100,000 ) and $25,000 cash? Then what would Fred's recognired gain and busis in Rental House a3 be? 7 Jonathan had 525,000 worth of business-use equipment compietely destroyed in a fire. The equipment had an adjusted basis of 515,000 . Jonathun received insurance proceeds of $25,000 as a result of the loss. If Jonathan used the $25,000 insurance proceeds to purchase replacement property and elected nonrecognition, what is the amount of Jonuthari's realized and recognized gain or loss? What is the basis of the replacement property? If Jonathan used $20,000 of the $25,000 insurance proceeds to purchase replacement property and elected nonrecognition, what is the amount of Jonathan's realized and recognized gain or loss? What is the basis of the replacement property? If instead Jonathan only received insurance proceeds of $10.000 and did not purchase replacement property, what amount of gain or loss can fonathan elect not to recognize? B. Jim's father, Joe, purchased a house in 2007 for $300,000. Joe ured the house as his principal residence until November 2016 , when he gifted the house to Jim. On the date of the gift, the house was worth 5500,000 . No gift tax was paid. Jim then used the house as his principal residence from November 2016 to December 2020 . A year later, in December 2021, Jim sold the hoese for $1.000.000. Jim is single. What is flim's recognized gain or loss on the sale of the house? What if Jim waited until February 2024 to sell the house for $1,100,000 ? Then what would be the amount of Jim's recognized gain or ioss on the sale of the house? 6 Fred owns Rental House A1 (FMV =$300,000,AB=$250,000). Fred exchanges Rental House $1 for Rentat House #2 tFMV =5200.000:AB=5400.000 ) and 5100.000cash. What is Fred's recognized gain or loss on the exchange? What is Fred's basis in Rental House 12 ? What if Fred exchanged Rental House a1 for Rental House a3 (FMV =$275.000;AB=$100,000 ) and $25,000 cash? Then what would Fred's recognired gain and busis in Rental House a3 be? 7 Jonathan had 525,000 worth of business-use equipment compietely destroyed in a fire. The equipment had an adjusted basis of 515,000 . Jonathun received insurance proceeds of $25,000 as a result of the loss. If Jonathan used the $25,000 insurance proceeds to purchase replacement property and elected nonrecognition, what is the amount of Jonuthari's realized and recognized gain or loss? What is the basis of the replacement property? If Jonathan used $20,000 of the $25,000 insurance proceeds to purchase replacement property and elected nonrecognition, what is the amount of Jonathan's realized and recognized gain or loss? What is the basis of the replacement property? If instead Jonathan only received insurance proceeds of $10.000 and did not purchase replacement property, what amount of gain or loss can fonathan elect not to recognize? B. Jim's father, Joe, purchased a house in 2007 for $300,000. Joe ured the house as his principal residence until November 2016 , when he gifted the house to Jim. On the date of the gift, the house was worth 5500,000 . No gift tax was paid. Jim then used the house as his principal residence from November 2016 to December 2020 . A year later, in December 2021, Jim sold the hoese for $1.000.000. Jim is single. What is flim's recognized gain or loss on the sale of the house? What if Jim waited until February 2024 to sell the house for $1,100,000 ? Then what would be the amount of Jim's recognized gain or ioss on the sale of the house