Templeton Properties and Jameson Rentals, both corporate landlords, exchange apartment buildings. The exchange qualifies as like-kind for
Question:
Templeton Properties and Jameson Rentals, both corporate landlords, exchange apartment buildings. The exchange qualifies as like-kind for both parties. Liabilities exist on each building and each company agrees to assume the liabilities encumbering the properties taken in the exchange. Jameson also gives cash to Templeton on the exchange. The properties GIVEN in the exchange (along with the liabilities attached to those properties) appear below each taxpayer.
Templeton | Basis | FMV | Jameson | Basis | FMV |
Land and Building | $350,000 | $550,000 | Land and Building | $480,000 | $460,000 |
Cash given | $40,000 | $40,000 | |||
Liability on property assumed by Jameson on transfer | $250,000 | Liability on property assumed by Templeton on transfer | $200,000 |
The adjusted basis in the like-kind property received by Jameson is __________
Expert Answer:
The calculation for adjusted basis in the likekind property received by Jameson is shown below Calcu... View the full answer
