Debbie owns a building with a basis of ($300,000) and a holding period starting on May 10,
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Debbie owns a building with a basis of \($300,000\) and a holding period starting on May 10, 2011.
Debbie exchanges the building for a building owned by Doug on July 23, 2023. Doug’s building has a FMV of \($500,000.\) Both Debbie and Doug use the building in their businesses.
a. What is Debbie’s basis for the building received in the exchange and when does the holding period start for that building?
b. If Debbie and Doug are related taxpayers, explain what action could occur that would cause the exchange not to qualify as a like-kind exchange.
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Related Book For 
Pearsons Federal Taxation 2024 Individuals
ISBN: 9780138238100
37th Edition
Authors: Mitchell Franklin, Luke E. Richardson
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