assignment - Chapter 13 Page 13-56: Problem 30 In...

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Chapter 13 Page 13-56: Problem 30 In connection with like-kind exchanges, discuss each of the following: o Realized gain If the amount realized exceeds the property’s adjusted basis o Realized loss If the property’s adjusted basis exceeds the amount realized o Recognized gain Is the amount of the realized gain that is included in the taxpayer’s gross income o Recognized loss Is the amount of a realized loss that is deductible for tax purposes o Postponed gain If there is a postponed gain, the taxpayer has recovered more than the cost or other basis of the property exchanged in an amount equal to the unrecognized gain. o Postponed loss Non recognition creates a situation in which the taxpayer has recovered less than the cost or other basis of the property exchanged in an amount equal to the unrecognized loss o Basis of like-kind property received Received in the exchange is the property’s fair market value less postponed gain or plus postponed loss. o Basis of boot received A boot is property that is not like-kind property, including cash. The basis of any boot received is the boot’s fair market value. Page 13-58: Problem 45
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assignment - Chapter 13 Page 13-56: Problem 30 In...

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