Problem 13-78 (LO. 6, 9) Tom Howard and Frank Peters are good friends (and former college roommates). Each owns investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make their lives easier, they decide to exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). Tom's property is subject to a mortgage of $12,000 that will be assumed by Frank. If an amount is zero, enter "0". a. Frank's recognized gain is $ b. Frank's adjusted basis is $ and Tom's recognized gain is $ , and Tom's adjusted basis is $ c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom would use the cash to pay off the mortgage. The tax consequences to Tom produce a recognized gain of $

Problem 13-78 (LO. 6, 9) Tom Howard and Frank Peters are good friends (and former college roommates). Each owns investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make their lives easier, they decide to exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). Tom's property is subject to a mortgage of $12,000 that will be assumed by Frank. If an amount is zero, enter "0". a. Frank's recognized gain is $ b. Frank's adjusted basis is $ and Tom's recognized gain is $ , and Tom's adjusted basis is $ c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom would use the cash to pay off the mortgage. The tax consequences to Tom produce a recognized gain of $

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 38P

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Problem 13-75 (LO. 6, 9) Tom Howard and Frank Pérez are good friends (and former college roommates). Each owns investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make their lives easier, they decide to exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). Tom's property is subject to a mortgage of $12,000 that will be assumed by Frank. If an amount is zero, enter "0". a. What are Frank's and Tom's recognized gains? Frank's recognized gain is $ , and Tom's recognized gain is $ b. What are their adjusted bases? Frank's adjusted basis is $ and Tom's adjusted basis is $ c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom…
Problem 15-38 (LO. 2, 5) Tom Howard and Frank Peters are good friends (and former college roommates). Each owns investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make their lives easier, they decide to exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (20 acres of unimproved land; adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (25 acres of unimproved land; adjusted basis of $60,000; fair market value of $92,000). Tom's property is subject to a mortgage of $12,000 that will be assumed by Frank. If an amount is zero, enter "0". b. What are their adjusted bases?Frank's adjusted basis is $fill in the blank 01a88e015fb6072_1, and Tom's adjusted basis is $fill in the blank 01a88e015fb6072_2. c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom would use…
14. Billie and Bobbie both own separate residential real properties. Billie's property has a fair market value of $250,000 and a cost basis of $200,000. Bobbie's property has a fair market value of $275,000 and a cost basis of $180,000. Both individuals agree to exchange properties. In order to facilitate the exchange, Billie agrees to pay Bobbie and additional $25,000 cash. What is Billie's and Bobbie's cost basis in their replacement properties, respectively? a. $205,000 and $175,000 b. $225,000 and $180,000 c. $180,000 and $200,000 d. None of the above.
kk. Subject :- Accounting Michelle exchanges land in Illinois with a FMV of $100,000 and an adjusted basis of $60,000 for land in Indiana with a FMV of $80,000 and $20,000 cash. Both parcels of land will be used in Michelle's trade or business. What is Michelle's recognized gain or loss?
Problem 11-56 (LO 11-6) (Algo) [The following information applies to the questions displayed below.] Kase, an individual, purchased some property in Potomac, Maryland, for $225,000 approximately 10 years ago. Kase is approached by a real estate agent representing a client who would like to exchange a parcel of land in North Carolina for Kase's Maryland property. Kase agrees to the exchange. What is Kase's realized gain or loss, recognized gain or loss, and basis in the North Carolina property in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.) Problem 11-56 Part-a (Algo) a. The transaction qualifies as a like-kind exchange, and the fair market value of each property is $800,000. Description Amount Realized gain Recognized gain Adjusted basis in new property $ $ $ 575,000 0 225,000
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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
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Logan and Jonathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $165,500) is worth $198,600 and Jonathan's land has a fair market value of $157,225, Jonathan also gives Logan cash of $41,375. a. Logan's recognized gain is $ b. Assume that Jonathan's land is worth $178,740 and he gives Logan $19,860 cash. Logan's recognized gain is $
2 A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of $100 and is subject to a mortgage of $40. a. What are the consequences to each of the parties? b. Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer? c Suppose instead that the mortgage was for $60. Suppose further that this mortgage was incurred on the purchase of the property many years ago. Would this change your answer? d. Same as (c) except that A also transfers accounts payable of $10. A is a cash basis taxpayer. How would this change your answer?
Exercise 14-22 (LO. 3) Juliana purchased land three years ago for $50,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $70,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $45,000 on the date of the gift, and that Tom sold the land for $43,000. Tom's basis in the land is $ and he has a realized of $ on the sale.
Brian and Sandy are forming a partnership. Brian will invest a truck with a book value of $11000 and a fair value of $13000. Sandy will invest a building with a book value of $30600 and a fair value of $42300 with a mortgage of $14000. What amount should be recorded in Brian’s capital account? $30600 $28300 $42300 $13000