Sam owns a non-depreciable capital asset held for investment. The asset was purchased for $300,000 seven years ago and is now subject to a $50,000 liability. During the current year, Sam transfers the asset to Alex in exchange for $80,000 cash and a new boat with a $70,000 FMV to be used by Sam for personal use; Alex assumes the $50,000 liability. Determine the amount of Sam's LTCG or LTCL.
Sam owns a non-depreciable capital asset held for investment. The asset was purchased for $300,000 seven years ago and is now subject to a $50,000 liability. During the current year, Sam transfers the asset to Alex in exchange for $80,000 cash and a new boat with a $70,000 FMV to be used by Sam for personal use; Alex assumes the $50,000 liability. Determine the amount of Sam's LTCG or LTCL.
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 38P
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Transcribed Image Text:Sam owns a non-depreciable capital asset held for
investment. The asset was purchased for $300,000 seven
years ago and is now subject to a $50,000 liability. During
the current year, Sam transfers the asset to Alex in
exchange for $80,000 cash and a new boat with a $70,000
FMV to be used by Sam for personal use; Alex assumes the
$50,000 liability. Determine the amount of Sam's LTCG or
LTCL.
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