Tara owns a nondepreciable capital asset held for investment. The asset was purchased for $200,000 six years earlier and is now subject to a $15,000 liability. During the current year, Tara transfers the asset to Tristan in exchange for $110,000 cash and a new automobile with a $70,000 FMV to be used by Tara for personal use; Tristan assumes the $15,000 liability. Determine the amount of Tara's Long Term Capital Gain or Long Term Capital Loss.
Tara owns a nondepreciable capital asset held for investment. The asset was purchased for $200,000 six years earlier and is now subject to a $15,000 liability. During the current year, Tara transfers the asset to Tristan in exchange for $110,000 cash and a new automobile with a $70,000 FMV to be used by Tara for personal use; Tristan assumes the $15,000 liability. Determine the amount of Tara's Long Term Capital Gain or Long Term Capital Loss.
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 48P
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Transcribed Image Text:Tara owns a nondepreciable capital asset held for investment. The asset was
purchased for $200,000 six years earlier and is now subject to a $15,000 liability.
During the current year, Tara transfers the asset to Tristan in exchange for
$110,000 cash and a new automobile with a $70,000 FMV to be used by Tara
for personal use; Tristan assumes the $15,000 liability.
Determine the amount of Tara's Long Term Capital Gain or Long Term
Capital Loss.
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