What is the adjusted cost base of the cottage to Individual B immediately after the 2020 sale?
What is the adjusted cost base of the cottage to Individual B immediately after the 2020 sale?
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 51P
Related questions
Question
Individual A purchased a cottage in 2002 for $205,928. the cottage foes not qualify for the principal residence exemption. In 2020, Individual A sold the cottage to Individual B for $205,928. Individual A and Individual B are sisters. At the time of sale, the cottage had a fair market value of $343, 162.
What is the adjusted cost base of the cottage to Individual B immediately after the 2020 sale?
Enter your response as a positive number. round your answer to the nearest dollar and do not enter any symbols.
Please show the work
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT