The basis of her acquired property is 43 150000 fmv

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Linda’s realized gain is $90,000 and her recognized gain is $40,000. The basis of her acquired property is 43. $150,000. FMV of property received $200,000 Plus: Mortgage assumed by Carol 60,000 Less: Mortgage assumed by Linda 20,000 Total consideration received $240,000 Less: Adjusted basis 150,000 Gain realized $90,000 Gain recognized ($60,000 $20,000) $40,000 Method I: Basis of old property $150,000 Plus: Gain recognized 40,000 Plus: Mortgage assumed by Linda 20,000 Less: Mortgage assumed by Carol 60,000 Basis of new property $150,000
197 Instructor’s Manual © 2010 CCH. All Rights Reserved. Chapter 11 Method II: FMV of property received $200,000 Less: Deferred gain 50,000 Basis of new property $150,000 Carol’s realized gain is $60,000 and her recognized gain is $0. The basis of her acquired property is $180,000. FMV of property received $240,000 Plus: Mortgage assumed by Linda 20,000 Less: Mortgage assumed by Carol 60,000 Total consideration received $200,000 Less: Adjusted basis 140,000 Gain realized $60,000 Gain recognized $0 It is as if Carol is in a “boot-given” situation. Method I: Basis of old property $140,000 Plus: Mortgage assumed by Carol 60,000 Less: Mortgage assumed by Linda 20,000 Basis of new property $180,000 Method II: FMV of property received $240,000 Less: Deferred gain 60,000 Basis of new property $180,000 Like-Kind Exchanges: Basis and Gain or Loss Peter’s realized gain is $75,000 and his recognized gain is $55,000. The basis of his acquired property is 44. $200,000. FMV of property received $220,000 Plus: Mortgage assumed by Charlie 45,000 Plus: Cash received 55,000 Less: Mortgage assumed by Peter 85,000 Total consideration received $235,000 Less: Adjusted basis 160,000 Gain realized $75,000 Gain recognized (to extent of cash received) $55,000 Method I: Basis of old property $160,000 Plus: Mortgage assumed by Peter 85,000 Plus: Gain recognized 55,000 Less: Mortgage assumed by Charlie 45,000 Less: Cash received 55,000 Basis of new property $200,000 Method II: FMV of property received $220,000 Less: Deferred gain 20,000 Basis of new property $200,000
198 CCH Federal Taxation—Comprehensive Topics Chapter 11 © 2010 CCH. All Rights Reserved. Charlie’s realized gain is $100,000 and his recognized gain is $0. The basis of his acquired property is $135,000. FMV of property received $235,000 Plus: Mortgage assumed by Peter 85,000 Less: Mortgage assumed by Charlie 45,000 Total consideration received $275,000 Less: Adjusted basis $120,000 Cash paid 55,000 175,000 Gain realized $100,000 Gain recognized $0 It is as if Charlie is in a “boot-given situation. Method I: Basis of old property $120,000 Plus: Mortgage assumed by Charlie 45,000 Plus: Cash paid 55,000 Less: Mortgage assumed by Peter 85,000 Basis of new property $135,000 Method II: FMV of property received $235,000 Less: Deferred gain 100,000 Basis of new property $135,000 Like-Kind Exchanges: Basis and Gain or Loss 45. Chad has a realized gain of $50,000, a recognized gain of $15,000 and a basis in the new property of a. $105,000. FMV of property received $140,000 Plus: Mortgage assumed by Nash 35,000 Cash received 15,000 Less: Mortgage assumed by Chad 40,000 Total consideration received $150,000 Less: Adjusted basis 100,000 Gain realized $50,000 Gain recognized $15,000 Method I: Basis of old property $100,000 Plus: Gain recognized 15,000 Plus: Mortgage assumed by Chad 40,000 Less: Mortgage assumed by Nash 35,000 Less: Cash received 15,000 Basis of new property $105,000 Method II: FMV of property received $140,000 Less: Deferred gain 35,000 Basis of new property $105,000
199 Instructor’s Manual © 2010 CCH. All Rights Reserved. Chapter 11

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