What is the taxpayer basis on the new real property received

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Q1. A taxpayer is trading real property used solely for business purposes for new real property to be used in his business. The real property originally cost $35,000 and he has taken $18,000 in depreciation. The old real property is currently worth $20,000 and the new real property the taxpayer wants in exchange is only worth $17,500. The other party also agrees to assume a liability from the taxpayer secured by the old real property of $2,500. What is the taxpayer basis on the new real property received?

Q2. A Client received a form 1099 DIV showing only a portion of the total distributions as qualified dividends. Which section and subsection of the Internal Revenue Code defines the tax rates to be imposed on qualified dividend. Example: IRC 2032a(a).

Reference no: EM133107698

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