Lance owns land held for investment purposes that has a basis of $250,000. He exchanges the land, plus $40,000 of cash, for a warehouse he will hold as rental property. The warehouse is worth $410,000, but is subject to a mortgage of $70,000 which Lance will assume.

What is the gain realized by Lance?

Answer rating: 100% (QA)

In this scenario even though Lance is trading the land for a warehouse its considered a likekind exc... View the full answer