David sells a piece of commercial land for $120,000 in cash, and the buyer assumes David's mortgage liability of $30,000 on the land. David's adjusted basis in the land is $90,000. What is the gain or loss David will recognize on the sale?
David sells a piece of commercial land for $120,000 in cash, and the buyer assumes David's mortgage liability of $30,000 on the land. David's adjusted basis in the land is $90,000. What is the gain or loss David will recognize on the sale?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 2BCRQ
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What is the gain or loss david will recognize on the sale ?
Transcribed Image Text:David sells a piece of commercial land for
$120,000 in cash, and the buyer assumes
David's mortgage liability of $30,000 on
the land. David's adjusted basis in the land
is $90,000. What is the gain or loss David
will recognize on the sale?
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