Mark owns a non-depreciable investment property. He purchased the property for $180,000 eight years ago, and it's currently subject to a $60,000 mortgage. This year, Mark transfers the property to Sarah under the following terms: . Sarah pays $85,000 in cash Sarah gives Mark a boat with FMV of $45,000 for personal use ⚫ Sarah assumes the $60,000 mortgage Calculate Mark's long-term capital gain or loss from this transaction.
Mark owns a non-depreciable investment property. He purchased the property for $180,000 eight years ago, and it's currently subject to a $60,000 mortgage. This year, Mark transfers the property to Sarah under the following terms: . Sarah pays $85,000 in cash Sarah gives Mark a boat with FMV of $45,000 for personal use ⚫ Sarah assumes the $60,000 mortgage Calculate Mark's long-term capital gain or loss from this transaction.
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 14P
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Transcribed Image Text:Mark owns a non-depreciable investment property. He purchased the
property for $180,000 eight years ago, and it's currently subject to a
$60,000 mortgage. This year, Mark transfers the property to Sarah under
the following terms:
.
Sarah pays $85,000 in cash
Sarah gives Mark a boat with FMV of $45,000 for personal use
⚫ Sarah assumes the $60,000 mortgage
Calculate Mark's long-term capital gain or loss from this transaction.
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