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Bubba exchanges a warehouse for a building she will use as an office building. The adjusted basis of the warehouse is $600,000, and the fair market value of the office building is $350,000. In addition, the taxpayer receives cash of $150,000. What is the recognized gain or loss and the basis of the office building?

Jul 24th, 2015

Thank you for the opportunity to help you with your question!

Recognized Gain / (loss) = Value Assets Received - Value Assets Given

=(350000+150000) � 600000

= -100000

Hence there is recognized loss of $100000


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Jul 24th, 2015

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