Like Kind Exchange Flashcards Preview

corp tax > Like Kind Exchange > Flashcards

Flashcards in Like Kind Exchange Deck (13)
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1
Q

3 steps in finding necessary values for like kind exchange

A

Find realized gain, then recognized gain, the basis of new property

2
Q

How do you find realized gain (no boot given or received)

Basis Old -17000
Basis New - 20000

A

FMV received - Adjusted basis given up

3000 gain realized

3
Q

How do you find recognized gain (no boot given or received)

Basis Old -17000
Basis New - 20000

A

The lesser of the gain realized or boot received

0 - lesser of 3000 or 0 (no boot received)

4
Q

How do you find basis of new property (no boot given or received)

Basis Old -17000
Basis New - 20000

A

Adjusted basis of property given up + gain recognized

17000 + 0

5
Q

How do you find realized gain (no boot given or received)

Basis Old -23000
Basis New - 20000

A

FMV received - Adjusted basis given up

3000 LOSS

6
Q

How do you find recognized gain (no boot given or received)

Basis Old -23000
Basis New - 20000

A

Realized loss is never recognized in like-kind exchanges

0

7
Q

How do you find basis of new property (no boot given or received)

Basis Old -23000
Basis New - 20000

A

Adjusted basis of property given up

23000

8
Q

How do you find realized gain (2000 boot PAID)

Basis Old -17000
Basis New - 22000

A

(FMV received - boot paid) - adjusted basis of auto given up

22000 - 2000 - 17000

3000 gain

9
Q

How do you find recognized gain (2000 boot PAID)

Basis Old -17000
Basis New - 22000

A

Lesser of realized gain or boot received

0 - no boot received!

10
Q

How do you find basis of new property (2000 boot PAID)

Basis Old -17000
Basis New - 22000

A

Adjusted basis property given up + boot paid

17000 + 2000

19000

11
Q

How do you find realized gain (3500 auto trailer received)

Basis Old -17000
Basis New - 16500

A

FMV new auto + boot received (trailer) - adjusted basis auto given up

16500 + 3500 - 17000

3000 gain

12
Q

How do you find recognized gain (3500 auto trailer received)

Basis Old -17000
Basis New - 16500

A

lesser of realized gain (3000) or boot received (3500)

3000

13
Q

How do you find basis of new property (3500 auto trailer received)

Basis Old -17000
Basis New - 16500

A

Adjusted basis property given up + gain recognized - boot received

17000 + 3000 - 3500

16500