Chapter_12_with_Solutions - Gets $100,000 less $20,000...

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HA 4422 Review Session Chapter 12 Jo owns a rental apartment building FMV $100,000 Adj Basis $40,000 Mortgage $30,000 Jack owns a vacant lot FMV $80,000 Adj Basis $50,000 Mortgage $10,000 They do a like-kind exchange 1 What is Jo's recognized gain/loss? Gets $80,000 $20,000 Net debt relief -40,000 Basis 60,000 Gain, recognized to extent of boot received 20,000 gain recognized 40,000 gain deferred 2 What is Jo's basis in vacant lot? Basis in old $40,000 Basis in new $40,000 Sell tomorrow $80,000 Deferred gain 40,000 will be recognized on sale 3 What is Jack's recognized gain/loss?
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Unformatted text preview: Gets $100,000 less: $20,000 $80,000 basis 50,000 gain 30,000 not recognized, no boot 4 What is Jack's basis in apartment building? Basis of old 50,000 plus: additional debt 20,000 $70,000 Sell tomorrow $100,000 Deferred gain pops out 30,000 Judith, a single person, bought her house for $300,000, now worth $600,000 She has owned and used house as principal residence for 3 years prior to selling it for $600,000. How much gain does Judith need to pay tax on?...
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This homework help was uploaded on 02/20/2009 for the course H ADM 422 taught by Professor Lhensley during the Fall '08 term at Cornell.

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Chapter_12_with_Solutions - Gets $100,000 less $20,000...

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