Reference no: EM132648653
Question - Assume instead of the above that Aliza purchases a house for $500,000. She pays $200,000 in cash and signs a mortgage for $300,000. After living in the house as her principle residence for 2 years, she sells the house for $900,000 in cash add the buyer assumes her mortgage of$200,000.
1. What is a Alizsa's amount realized on the sale?
2. Does Aliza realize a gain on the sale of her residence, and if so, what is the amount?
3. Does Aliza recognize a gain on the sale, and if so what is the amount?
4. Isaac buys a piece of land as an investment, paying $20,000. Three years later he trades the land to Isadore for a piece of land worth $26,000. Isaac holds the new land as an investment. Does Isaac realize a gain on the swap of the lland, and if so how much gain is realized?
5. Does Isaac recognize a gain on the swap of the land and if so how much is it?
6. What is Isaac's adjusted basis in the new property he receives?
7. What is Isaac's holding period in the new land he receives?
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