Aaron sells property with a basis of $300,000 and a FMV of $800,000. In the sale, he incurs $100,000 of selling expenses. He receives a $400,000 note, $100,000 installments from year 1 through 4. He also receives like kind property of $400,000. He also has $200,000 depreciation recapture inherent in the property that Aaron sells. How much income in year 1 will be counted as capital gain?

Answer rating: 100% (QA)

To determine the amount of income counted as capital gain in year 1 from the sale of the property we ... View the full answer