Realized and Recognized Gain Help?
Can someone PLEASE HELP with the following questions? I think I am doing this correctly, but I am unsure. I have done the first one, and I'm stuck on computing the other two!
You transfer land with a basis of $20,000 and cash of $6,000 and receive a building with a FMV of $35,000.
How much is your realized gain? _(35,000-6,000-20,000__$9000
How much is your recognized gain? __9,000___
What is the basis of the building? ___20,000-9,000=11,000___
You transfer land with a basis of $33,000 and receive a building with a fair market value of $65,000 and an attached mortgage of $18,000 and securities with a fair market value of $7000 (basis of $5000). You assume the mortgage on the building.
Realized gain ______________________
Recognized gain ____________________
Basis of building ____________________
Basis of securities ____________________
You transfer land with a basis of $25,000 and securities with a fair market value of $3,000 (basis $7,000). You receive a building with a fair market value of $90,000 and an auto with a fair market value of $5,000.
Realized gain ________________________
Recognized gain ______________________
Basis of building ______________________
Basis of auto _________________________
