In_class_exercise_Chapter_12_Solutions

In_class_exercise_Chapter_12_Solutions - 50000 Check this...

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HA 4422 NAME Chapter 12 Tax-deferred exchanges 1) I have a rental property FMV 100000 Adj Basis 50000 You have a vacant lot FMV 100000 Basis 70000 We swap properties My gain FMV received 100000 Basis 50000 Realized Gain 50000 Recognized 0 Basis of land 50000 Check this: If I sell tomorrow 100000 my basis in land 50000 deferred gain pops out 50000 Your gain FMV received 100000 Basis 70000 Realized gain 30000 Recognized 0 Basis of rental prop 70000 Check this: If I sell tomorrow 100000 your basis in rental 70000 deferred gain pops out 30000 OVER 2) I have a rental property FMV 150000 Basis 50000 Mortgage 50000
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You have a vacant lot FMV 100000 Basis 70000 We swap and you assume the mortgage. My gain FMV received 100000 plus: Relief of mortgage 50,000 150000 Less: basis 50000 Gain realized 100000 Gain recognized 50000 Gain deferrred 50000 My basis in land
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Unformatted text preview: 50000 Check this: If I sell tomorrow 100000 my basis in land 50000 deferred gain pops out 50000 Your gain FMV received 150,000 Less: basis 70,000 Less: debt assumed 50,000 Gain 30,000 Your basis in land 70,000 Check this: plus debt assumed 50,000 If you sell tomorrow 150,000 Your basis in building 120,000 your basis 120,000 deferred gain pops out 30,000 3) I have a building. FMV 110,000 Basis 40,000 Building is destroyed by fire. I receive $110,000 from insurance. Realized gain is 70,000 I buy a replacement building. Pay 100,000 Deferred gain is 60,000 Recognized gain is 10,000 Basis of new building is 40,000 Check this: Sell 100000 Basis 40,000 Deferred gain pops out 60,000...
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