![]() ![]() The office building has an FMV of $350,000. ![]() ![]() Kai exchanges the apartment building for an office building. Kai's basis in the apartment building is $380,000. The apartment building is worth $500,000, although it is subject to a mortgage of $100,000. Glen must recognize a gain of 120,000 Kai owns an apartment building held for investment purposes. In addition, the other party assumes the mortgage which will be held for investment. Glen exchanges the building for investment land worth $150,000 plus $10,000 cash. Glen's basis in the building is $120,000. The building is worth $200,000, but is subject to a mortgage of $40,000. The gain realized by Emily on the exchange is 50,000 Glen owns a building that is used in business. The warehouse is worth $420,000, but is subject to a mortgage of $80,000 which Emily will assume. She exchanges the land, plus $40,000 cash, for a warehouse to be used in her business. Emily owns land for investment purposes that has a FMV of $300,000 (basis of $260,000). ![]()
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