Oscar and Harriet agree to exchange apartment buildings and the mortgages on the buildings, with any difference
Question:
a. How much cash must be paid, and who must pay the cash to equalize the exchange?
b. What are Oscar's realized and recognized gains on the exchange and his basis in the apartment building acquired in the exchange?
c. What are Harriet's realized and recognized gains on the exchange and her basis in the apartment building acquired in the exchange?
Transcribed Image Text:
Oscar Harriet Fair market value Mortgage Adjusted basis $120,000 70,000 40,000 $112,000 52,000 55,000
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a Oscar must pay Harriet 10000 60000 50000 Oscars net of mortgage value is 50000 120000 70000 and Ha...View the full answer
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Related Book For
Concepts In Federal Taxation 2016
ISBN: 9781305585133
23rd Edition
Authors: Kevin Murphy, Mark Higgins
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