Question

a taxpayer exchanges real property in which his basis was $100,000 for like kind property worth...

a taxpayer exchanges real property in which his basis was $100,000 for like kind property worth $80,000 plus $40000 in cash, what amount of gain is recognized?

Homework Answers

Answer #1
Gain
Amount realized 120000 80000+40000
less
Adjusted basis 100000
Gain 20000
to the maximum amount of boot ie 40000
Hence, amount of gain recognized = $20000
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