Questions from Federal Taxation

Q: Which of the following exchanges qualify as like-kind exchanges under

Which of the following exchanges qualify as like-kind exchanges under Sec. 1031? a. A motel in Texas for a motel in Italy b. An office building held for investment for an airplane to be used in the...

Q: Consider the following information for Mr. and Mrs. Gomez:

Consider the following information for Mr. and Mrs. Gomez: • On May 26, 2016, they sold their principal residence, acquired in 1999, for $200,000. They paid $8,000 of selling expenses. Their basis i...

Q: Paul owns a building used in his business with an adjusted basis

Paul owns a building used in his business with an adjusted basis of $340,000 and a $750,000 FMV. He exchanges the building for a building owned by Kelley. Kelley’s building has a $950,000 FMV but is s...

Q: Helmut exchanges his apartment complex for Heidi’s farm, and the exchange

Helmut exchanges his apartment complex for Heidi’s farm, and the exchange qualifies as a like-kind exchange. Helmut’s adjusted basis for the apartment complex is $600,000 and the complex is subject to...

Q: Carol owns land used in her business with a basis of $

Carol owns land used in her business with a basis of $70,000 and a fair market value of $90,000. She is planning to exchange the land for a warehouse owned by Jeff and used in his business. Jeff’s war...

Q: Wayne exchanges unimproved land with a $50,000 basis and

Wayne exchanges unimproved land with a $50,000 basis and marketable securities with a $10,000 basis for an eight-unit apartment building having a $150,000 FMV. The land and marketable securities are h...

Q: Bob owns a duplex used as rental property. The duplex has

Bob owns a duplex used as rental property. The duplex has a basis of $86,000 and $300,000 FMV. He transfers the duplex to Cindy, his sister, in exchange for a triplex that she owns. The triplex has a...

Q: Why do some revenue ruling citations refer to the Internal Revenue Bulletin

Why do some revenue ruling citations refer to the Internal Revenue Bulletin (I.R.B.) and others to a Cumulative Bulletin (C.B.)?

Q: Assume the same facts as in I:12-36 except

Assume the same facts as in I:12-36 except Cindy sells the duplex to a nonrelated individual more than two years after the exchange with Bob. Ignore any changes in adjusted basis due to depreciation t...

Q: Duke Corporation owns an office building with a $400,000

Duke Corporation owns an office building with a $400,000 adjusted basis. The building is destroyed by a tornado. The insurance company paid $750,000 as compensation for the loss. Eight months after th...