Assume Kevin's land is worth only $450,000. He exchanges the land (B: $100,000) and a piece of business equipment worth $50,000 in which he has an adjusted basis of $75,000 for Ashley's commercial real estate worth $500,000. Kevin has held the business equipment for several years, and its basis reflects $20,000 of depreciation deductions. What are the tax consequences to Kevin?

Answer rating: 100% (QA)

Heres a breakdown of the tax implications Land Exchange Fair market value of land relinquished Kevin... View the full answer