Property Transactions

Question 1

Like Kind Exchange

Answer 1

Property Received (FMV)
+ Boot Received
- Boot Paid
- Adjusted Basis
= Gain Realized
Recognized = Lesser of Realized and Boot Received
Never recognize loss in like kind exchange

Question 2

Net Capital Losses

Answer 2

Carry back 3 years and forward 5

Question 3

MACRS Deduction Office Building

Answer 3

(Building Cost - Land) / 39 years = Annual Depreciation
Annual Depreciation / 12 * 50% = Mid month
Mid Month + remaining months = deduction

Question 4

Inheritance of stock on date of death

Answer 4

Basis is FMV on date of death

Gain is always long term

Question 5

1245 Recapture

Answer 5

Lesser of depreciation taken or recognized gain

Question 6

Casualty Loss

Answer 6

Lesser of Basis or decrease in FMV
Less: Insurance Recovery
Less: Floor amount 100
Less: 10% AGI

Question 7

Like Kind Exchange Basis in New Property

Answer 7

Adjusted Basis of old property + Gain recognized - boot received + boot paid