1. Which of the following exchanges qualify for 1031 treatment?

1. Computer for an office desk, both used in business

2. Inventory for a machine, both used in business

3. Land held for investment for an office building used in business

4. 500 shares of IBM stock for 500 shares of Dell stock

5. Business parking lot in downtown San Diego for land held for investment in New York

6. Land held for investment in Iowa for land held for investment in Florence, Italy

2. Ted and Sam exchange real property used for business purposes in a qualified like-kind exchange (Teds office building for Sams warehouse). Teds office building, which originally cost $340,000, has an adjusted basis of $200,000 due to depreciation charges. His office building is worth $240,000 (FMV). Ted still owes $50,000 on debt incurred to purchase the office building, and Sam is assuming this liability. Sams warehouse is worth $190,000 and his basis is $160,000 ($200,000 original cost minus $40,000 of A/D).

1. What is the amount of Teds realized gain (loss) on his old office building?

2. What is the amount and character of Teds recognized gain (loss) on his old office building?

3. What is Teds basis in his new warehouse?

4. What is the amount of Sams realized gain (loss) on his old warehouse?

5. What is the amount and character of Sams recognized gain (loss) on his old warehouse?

6. What is Sams basis in his new office building?