Ralph transferred a silver mine (held for investment purposes) to Simon. The mine had a fair market value of $10,000,000 and a basis of $6,000,000. Simon transferred a golf course (used in a trade or business) with a fair market value of $10,000,000 and a basis of $3,000,000, to Ralph. Simon intends to hold the silver mine as an investment, and Ralph will use the golf course in his trade or business. Assume that all requirements of Section 1031 have been met. What is Ralph's basis in the golf course?

Answer rating: 100% (QA)

In a likekind exchange under Section 1031 of the Internal Revenue ... View the full answer