REG Study Group 2020 - Page 24

Viewing 4 posts - 691 through 694 (of 694 total)
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  • #3043449 Reply
    se7en.14
    Participant

    Can someone show the calculation on how to get $430k? Thanks

    In the current year, Vinton exchanged unimproved land for an apartment building. The land had a basis of $300,000, and a fair market value (FMV), of $420,000, and was encumbered by a $100,000 mortgage. The apartment building had an FMV of $550,000 and was encumbered by a $230,000 mortgage. Each party assumed the other's mortgage. What is Vinton's basis in the office building?
    A.$300,000
    B.$320,000
    C.$430,000
    D.$550,000

    Answer – C.

    .
    #3044019 Reply
    monikerncmonikernc
    Participant

    Basis in the new property is its FMV minus the deferred gain on the original property. Read through examples:

    Calculation of Basis in New Property in a Section 1031 Like Kind Exchange

    AUD - 93
    BEC - 82
    FAR - 76
    REG - 88
    How have you been?
    Ninja book and MCQs and the forum, all first try! 2016
    Licensed State of Montana April Fool’s Day 2020
    State of Colorado June 2020 - AICPA Ethics 93
    Experience was the worst part of the journey for me. You?
    If you want things to change you have to do something different.
    #3044028 Reply
    monikerncmonikernc
    Participant

    Input here and view the report. https://www.cchwebsites.com/content/calculators/LikeKindExchange.html

    Then study.

    AUD - 93
    BEC - 82
    FAR - 76
    REG - 88
    How have you been?
    Ninja book and MCQs and the forum, all first try! 2016
    Licensed State of Montana April Fool’s Day 2020
    State of Colorado June 2020 - AICPA Ethics 93
    Experience was the worst part of the journey for me. You?
    If you want things to change you have to do something different.
    #3067764 Reply

    REG Sparring – Property Taxation – Tonight – 7pm (Central)

     
    Jeff Elliott, CPA (KS)
    NINJA CPA Review
Viewing 4 posts - 691 through 694 (of 694 total)
Reply To: REG Study Group 2020 - Page 24

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