What is the recognized gain or loss

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Problem - Pam exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $700,000. In addition, Pam receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land? How should Pam structure the transaction if she believes her marginal tax rate will increase in the future? How would the tax effects differ if Pam's rental building had a basis of $800,000.

Reference no: EM132801924

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