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Bee owns land (Bravo) with an adjusted basis of $60 and a fair market value of $100. Bravo is subject to a mortgage of $4. B sells the land to Dell...
Bee owns land (Bravo) with an adjusted basis of $60 and a fair market value of $100.
Bravo is subject to a mortgage of $4. B sells the land to Dell who gives Bee $96 in cash
and assumes the mortgage.
a) Does Bee realize gain/loss on the transaction and if yes, how much?
b) Does Bee recognize gain/loss on the transaction and if yes, how much?
2. Assume there is no mortgage and Bee swaps Bravo to Dell for land (Waterland) worth
$90, and $10 cash.
a) Does Bee realize gain/loss on the transaction and if yes, how much?
b) Does Bee recognize gain/loss on the transaction and if yes, how much?
c) What is Bee's basis in Waterland?
3. Assume there is no mortgage but Waterland is worth $45 so Bee gets Waterland plus
$55 in cash.
a) Does Bee realize gain/loss on the transaction and if yes, how much?
b) Does Bee recognize gain/loss on the transaction and if yes, how much?
c) What is Bee's basis in Waterland?
