C12-Chp-00-Property Sale-Like-Kind-Exch-Outline-Sol

C12-Chp-00-Property Sale-Like-Kind-Exch-Outline-Sol -...

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Summary of Transactions c49aa7dee23e9274c35b87bc79faefffc639a1ae.xls Page 1 of 3 Basic Facts for 12 alternative cases Mary bought a building and land for $400,000,. The land is allocated a cost of $200,000 of the $400,000. She claimed depreciation of $100,000 on the building. She disposed of the property (when it was worth $1,300,000). (Except when the building burned, in that case she built another building.) 1 She sells it for cash of $1,300,000. 2 She sells it for $1,300,000 on the installment basis. 3 She loses the building in a fire, it is not insured. a. Building was not insured. b. Revised information – the building was insured for $500,000. She built a new building at a cost of $520,000. 4 Change assumption, assume it was her home and she sold it at a large gain. 5 She exchanges it for a similar building worth $1,300,000. 6 She exchanges it for a similar building worth $1,300,000, in a 3-party exchange. 7 She trades the building for another building, under 3 alternative transactions Different cases involve different values, and cash payment or debt assumption. 8 She trades it for IBM stock worth $1,300,000. 9 She trades it for land worth $1,300,000 to be held as an investment. 10 She buys a new building after the city condemns her current building (involuntary conversion) and pays her $1,300,000 for it. 11 She invests the building in a new corporation and receives stock worth $1,300,000. 12 She invests the building in a new partnership and receives a partnership interest worth 1,300,000.
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1. Sell Buliding, etc.-Sol c49aa7dee23e9274c35b87bc79faefffc639a1ae.xls Page 2 of 3 Solution continues on page 4 (tab 4) Basic Facts for Mary and her Property Year(s) Amount Mary bought an office building (with land) - cost of $400,000. 2011 $400,000 Mary claimed total depreciation of $100,000. 2001-2011 ($100,000) Book value of land and building (located in uptown Charlotte) 2011 $300,000 City built a basketball arena and added a street car. Building is now in a valuable location and is worth: 2011 $1,300,000 Mary is single - no dependent. There is no debt on property. Assume $200,000 of the cost is allocated to land. Land is not depreciated.
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C12-Chp-00-Property Sale-Like-Kind-Exch-Outline-Sol -...

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