What is Isabels and Bobs Realized Gain

Assignment Help Taxation

Reference no: EM132658550

ACC 380 Tax Treatment of Individuals and Property - DePaul University

Part 1
Isabel exchanges a building with a fair market value (FMV) of $1,100,000 for $100,000 cash in addition to a building with fair market value (FMV) of $1,000,000 with Bob.

Isabel has a basis in her original property of $300,000 which Bob's original basis is $500,000

Question #1 - What is Isabel's and Bob's "Realized Gain", "Recognized Gain" and "Deferred Gain"

Question #2 - What is Isabel's and Bob's "new basis" in the property received using both methods.

Part 2

Hillary exchanges property (and Bill receives) with an adjusted basis of $250,000 which has a fair market value of $400,000, that is subject to a mortgage of $75,000 that Bill assumes.

Bill, in return for this property, provides Hillary with property with a fair market value of $300,000. This property has an adjusted basis to Bill of $200,000. Bill also gives Hillary $25,000

Question #1 - What is Hillary's and Bill's "Realized Gain", "Recognized Gain" and "Deferred Gain"
Question #2 - What is Hillary's and Bill's "new basis" in the property received using both methods.

Part 3
Sidney's building which is used in his trade or business with an adjusted basis of $60,000 is destroyed by fire on August 15, 2019. Sidney is a calender year taxpayer. On November 7, 2019 he receives insurance reimbursement of $120,000 for the loss. Sidney invest $90,000 in a new building.

Until what date does Sidney have to make a new investment and qualify for the non recognition election?

What is Sidney's realized gain? Show work!

What is Sidney's recognized gain? Show work!

What is Sidney's deferred gain? Show work!

What is Sidney's basis in new building? Show work!

Assume the same facts as above, except Sidney receives $40,000 of insurance proceeds.

What is Sidney's realized gain? Show work!

What is Sidney's recognized gain? Show work!

What is Sidney's deferred gain? Show work!

What is Sidney's basis in new building? Show work!

Attachment:- TAX Chapter.rar

Reference no: EM132658550

Questions Cloud

How will the sale of Activity D affect Sarah taxable income : Activity D, which had been profitable until last year, had a current loss of $1,500. How will the sale of Activity D affect Sarah's taxable income

Annual rate of return-rust bucket motor credit corporation : Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for sale to the public on March 28, 2008.

Vaccine-preventable diseases : Influenza is a virus that can be easily spread from person to person and kills thousands of people each year.

Regulatory minimum total risk-based capital ratio : A bank has $250 million in assets in the 0 percent risk-weight category. It has $475 million in assets in the 20 percent risk-weight category.

What is Isabels and Bobs Realized Gain : What is Isabels and Bobs "Realized Gain", "Recognized Gain" and "Deferred Gain" - What is Isabel's and Bob's "new basis" in the property received using

What are the basel committee objectives : What are the Basel Committee's objectives and how will its capital accords achieve these objectives?

Should Jorge close the sale of Activity A : Should Jorge close the sale of Activity A with Juanita this year, or should he wait until next year and sell to another buyer? Jorge is in the 32% tax bracket

Accept the deal of restructuring : How do they recover and why are investors still willing to accept the deal of restructuring?

Emergency medical treatment and active labor act : Emergency Medical Treatment and Active Labor Act protects the rights of the poor and uninsured by stating that a hospital cannot refuse emergency treatment

User Account

All Pages