Exercise 15-17 (Algorithmic) (LO. 2) Mandy and Theo exchange real property in a like-kind exchange. Mandy receives real property with a fair market value of $88,800 and transfers real property worth $62,160 (adjusted basis of $43,512) and cash of $26,640. What is Mandy's realized and recognized gain? If an amount is zero, enter "0". Mandy's realized gain is $ and her recognized gain is $

Exercise 15-17 (Algorithmic) (LO. 2) Mandy and Theo exchange real property in a like-kind exchange. Mandy receives real property with a fair market value of $88,800 and transfers real property worth $62,160 (adjusted basis of $43,512) and cash of $26,640. What is Mandy's realized and recognized gain? If an amount is zero, enter "0". Mandy's realized gain is $ and her recognized gain is $

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 19CE

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2 A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of $100 and is subject to a mortgage of $40. a. What are the consequences to each of the parties? b. Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer? c Suppose instead that the mortgage was for $60. Suppose further that this mortgage was incurred on the purchase of the property many years ago. Would this change your answer? d. Same as (c) except that A also transfers accounts payable of $10. A is a cash basis taxpayer. How would this change your answer?
2 A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of S100 and is subject to a mortgage of $40. a. What are the consequences to each of the parties? b. Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer?
Maud exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental house at the mountains with a fair market value of $180,000 and cash of $20,000. What is the recognized gain or loss? a. ($20,000) b. ($25,000) c. None of these d. $20,000 e. $0
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Exercise 14-18 (Algorithmic) (LO. 1) Melba purchases land from Adrian. Melba gives Adrian $311,600 in cash and agrees to pay Adrian an additional $467,400 one year later plus interest at 5.5%. a. What is Melba's adjusted basis for the land at the acquisition date? b. What is Melba's adjusted basis for the land one year later?
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