Frances exchanges an apartment building complex, Forest view, with a fair market value of $500,000, subject to
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Frances exchanges an apartment building complex, Forest view, with a fair market value of $500,000, subject to a mortgage of $200,000, for Oceanview an apartment building complex owned by Gayle. The fair market value of Oceanview is $500,000, and it is subject to a mortgage of $250, 000. Gayle also transfers $50,000 of cash to Frances. Frances’ basis in Forest view is $150,000. Gayle's basis in Oceanview is $100,000. How much gain is realized and recognized by Frances and Gayle? What are Frances’ and Gayle’s respective bases in the property received by each?
Related Book For
Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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