1031probs

1031probs - B exchanges Whiteacre and $17,000 in cash for...

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S ECTION 1031 P ROBLEMS P ROBLEM 1 A owns Blackacre, which has a basis of $10,000, but which is worth $50,000. A wishes to exchange Blackacre for Greenacre (worth $43,000) plus $7,000 cash. How is A taxed on the exchange? P ROBLEM 2 What if the facts are the same as in Problem 1, except that Blackacre is worth only $12,000, so A gets Greenacre (worth $5,000) and $7,000 cash? P ROBLEM 3 B owns Whiteacre with a basis of $24,000.
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Unformatted text preview: B exchanges Whiteacre and $17,000 in cash for Purpleacre. How is B taxed on the exchange? P ROBLEM 4 C exchanges Orangeacre (with an adjusted basis of $10,000 and fair market value of $11,000) plus stock (with an adjusted basis of $4,000 and a fair market value of $2,000) for Blueacre, which has a fair market value of $13,000. How is C taxed on the exchange?...
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