Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 15, Problem 7DQ
To determine
Describe the reason for new land having a different holding period than the stock.
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Valerie exchanges a building and land (used in her business) for Vanessa’s land and building and some equipment (used in her business). The assets have the following values: Provide the final answers to the questions below. Show your work.
Adjusted Basis
Fair Market Value
Valerie's real property
$9,760
$24,400
Vanessa's real property
$4,880
$19,520
Equipment
$4,392
$7,320
What are Valerie’s recognized gain or loss and basis for the land and building and equipment acquired from Vanessa?
What are Vanessa's recognized gain or loss and basis for the land and building acquired from Valerie?
Given Valerie’s gain/loss and the potential tax implications, do you recommend she makes this exchange?
Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The
assets have the following characteristics:
Adjusted Basis Fair Market Value
Sarah's real property
$3,600
$9,000
Tyler's real property
1,800
7,200
Equipment
1,620
2,700
a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler?
Her adjusted basis in the land and building she acquired from Tyler is $
Her recognized
is $
and her
adjusted basis in the equipment is $
b. What are Tyler's recognized gain or loss and basis for the land and building acquired from Sarah?
is $
Tyler's recognized
and his adjusted basis in the land and building he acquired from Sarah is
Sarah exchanges a building and land (used in her business) for Tyler's land and building and some equipment (used in his business). The assets have the following characteristics:
Adjusted Basis
Fair Market Value
Sarah’s real property
$120,000
$300,000
Tyler’s real property
60,000
220,000
Equipment
50,000
80,000
a. What are Sarah’s recognized gain or loss and basis for the land and building and equipment acquired from Tyler?
b. What are Tyler’s recognized gain or loss and basis for the land and building acquired from Sarah?
Chapter 15 Solutions
Individual Income Taxes
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - LO.2 Melissa owns a residential lot in Spring...Ch. 15 - LO.2 Ross would like to dispose of some land he...Ch. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 11DQCh. 15 - LO.3 Reba, a calendar year taxpayer, owns an...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 15DQCh. 15 - Prob. 16CECh. 15 - Prob. 17CECh. 15 - Prob. 18CECh. 15 - Prob. 19CECh. 15 - LO.3 On June 5, 2019, Brown, Inc., a calendar year...Ch. 15 - LO.3 Camilos property, with an adjusted basis of...Ch. 15 - Prob. 22CECh. 15 - Prob. 23CECh. 15 - Prob. 24CECh. 15 - Prob. 25CECh. 15 - Prob. 26CECh. 15 - Prob. 27PCh. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33PCh. 15 - Ed owns investment land with an adjusted basis of...Ch. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37PCh. 15 - Prob. 38PCh. 15 - Prob. 39PCh. 15 - Prob. 40PCh. 15 - LO.3 Howards roadside vegetable stand (adjusted...Ch. 15 - Prob. 42PCh. 15 - Prob. 43PCh. 15 - Prob. 44PCh. 15 - Prob. 45PCh. 15 - Prob. 46PCh. 15 - What are the maximum postponed gain or loss and...Ch. 15 - Prob. 48PCh. 15 - Prob. 49PCh. 15 - Prob. 50PCh. 15 - Prob. 51PCh. 15 - Prob. 52PCh. 15 - Prob. 53PCh. 15 - Prob. 54PCh. 15 - Prob. 55PCh. 15 - Prob. 56PCh. 15 - Devon Bishop, age 45, is single. He lives at 1507...Ch. 15 - Prob. 1RPCh. 15 - Prob. 2RPCh. 15 - Taylor owns a 150-unit motel that was constructed...Ch. 15 - Prob. 6RPCh. 15 - Prob. 1CPACh. 15 - Susie purchased her primary residence on March 15,...Ch. 15 - Chad owned an office building that was destroyed...Ch. 15 - Prob. 4CPACh. 15 - Marsha exchanged land used in her business in...Ch. 15 - Prob. 6CPACh. 15 - Prob. 7CPA
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