Taxation-Tab exchanges real estate used in his business along with stock for real estate
January 12th, 2018
Tab exchanges real estate used in his business along with stock for real estate to be held for investment. The stock transferred has an adjusted basis of $55,000 and a fair market value of $62,000. The real estate transferred has an adjusted basis of $74,000 and a fair market value of $200,000. The real estate acquired has a fair market value of $262,000.a. What is Tab’s realized gain or loss?b. His recognized gain or loss?c. The basis of the newly acquired real estate?