Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market value of $160,000 for a rental house at the mountains with a fair market value of $148,000 and cash of $12,000. What is Angela’s recognized gain or loss? Group of answer choices $148,000 ($20,000) $12,000 $0

Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market value of $160,000 for a rental house at the mountains with a fair market value of $148,000 and cash of $12,000. What is Angela’s recognized gain or loss? Group of answer choices $148,000 ($20,000) $12,000 $0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 44P

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Maud exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental house at the mountains with a fair market value of $180,000 and cash of $20,000. What is the recognized gain or loss? a. ($20,000) b. ($25,000) c. None of these d. $20,000 e. $0
LO.1 Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella 150,000 and assume her mortgage on the land for 100,000. Under the second option, Taylor will give Ella 250,000 and she will immediately pay off the mortgage. Taylor wants his basis for the land to be as high as possible. Given this objective, which option should Taylor select? Explain.
Kyle owns some land in Connecticut for which he paid $20,000 several years ago the property is now worth $50,000 if Kyle takes a loan for $30,000 with the property as collateral and uses $20,000 of the loan to improve his home in Orlando Florida and $10,000 to clear the brush off of Connecticut property what is his new basis in the Connecticut property uu nave diswered att the questions, select the "Submit Answers" button to receive your score. Kyle owns some land in Connecticut for which he paid $20,000 several years ago. The property is now worth $50,000. If Kyle takes a loan for $30,000, with the property as collateral, and uses $20,000 of the loan to improve his home in Orlando, FL, and $10,000 to clear the brush off the Connecticut property, what is his new basis in the Connecticut property? A $20,000 B $30,000 $40,000 $50,000 Evam Ouestion 2
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