Zephyr owned a rental house in Folsom that had fair market value of $500,000. Zephyr's adjusted basis
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Question:
Zephyr owned a rental house in Folsom that had fair market value of $500,000. Zephyr's adjusted basis in the house was $261,498.
This year, Zephyr exchanged his Folsom rental house with Isabella for a rental house in El Dorado Hills that has a current fair market value of $400,000. Isabella's adjusted basis in the El Dorado Hills rental house before the exchange was $95,348. In addition, Isabella gave Zephyr $100,000 cash. The exchange qualified as a like-kind exchange.
What is Zephyr’s basis in the El Dorado Hills rental house after the exchange?
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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