[loving1014]

I HAVE ATTEMPTED THE FOLLOWING QUESTIONS, COULD SOMEONE PLEASE CHECK THEM AND GUIDE ME THROUGH WHAT I AM DOING WRONG IF INCORRECT? THANK YOU!!

You transfer land with a basis of $43,000 and receive a building with a fair market value of $35,000 and cash of $10,000.

How much is your realized gain? (35,000+10,000-43,000)= 2,000
How much is your recognized gain? 10,000
What is the basis of the building? (43,000-10,000+2000)=35,000


You transfer land with a basis of $25,000, which has a mortgage attached of $9,000 and receive a building with a fair market value of $50,000 and cash of $4,000. The new owner of the land assumes your mortgage.

How much is your realized gain? (50,000+4,000+9,000-25,000) = 38,000
How much is your recognized gain? 13,000
What is the basis of the building? (38,000-13,000)=25,000

You transfer land with a basis $35,000 which has a mortgage attached of $16,000 and receive a building with a fair market value of $85,000 and an attached mortgage of $19,000. You assume the other party’s mortgage and the other party assumes your mortgage.

How much is your realized gain? (85,000-16,000)
How much is your recognized gain? __?___
What is the basis of the building? __?__