[Anonymous]

In Jeff’s REG Ninja audio, he mentioned that the new basis for the like-kind exchange is calculated as follows:

New basis in received property = Old basis in property given up + Boot paid – Gain recognized – boot received – Loss

While Wiley book mentioned that that the new basis for the

exchange is calculated as follows:

New basis in received property = Old basis in property given up + Boot paid + Gain recognized – boot received – Loss

Now i’m confused, can Jeff or someone else please explain whether Gain recognized is added or subtracted?

Thanks!

[CPA soon]

+Gain recognized

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Anonymous]

Thanks CPA soon, actually i listened again to Jeff, and the gain recognized is added unless the net boot is negative (e.g. net mortgage transferred – mortgage assumed)

DUH..:)

[Author]

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