Question
Wendy inherited a beach house in North Carolina (rental only) on January 2, 2020, from her father. The FMV at the fathers death was $850,000.
Wendy inherited a beach house in North Carolina (rental only) on January 2, 2020, from her father. The FMV at the fathers death was $850,000. He had purchased the house 20 years earlier for $100,000.
On December 29, 2020, Wendy properly conducted a like-kind exchange for rental real estate located at 128 Lake Blvd., Hot Town, AZ. She received rental property with an FMV of $950,000 and $20,000 cash in exchange for the North Carolina beach house. The Arizona property did not produce any income until 2020.
What is the adjusted basis for the property given up? What is the realized gain?
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Auditing and Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
9th edition
1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343
