Joined: 16 Jun 2010
Online Status: Offline Posts: 114
Posted: 27 Sep 2011 at 18:05 | IP Logged
for like kind exchanges:
if boot is received by other party and boot is also given by the taxpayer...do we need to net both in order to determine the gain recognized for the transaction?
example 1:
other party assumed the mortgage of the old asset given by taxpayer (boot received), while the taxpayer assumed the mortgage of the other party's asset (boot paid). According to Becker the solution was to net the liabilities together to determine recognized gain.
example 2:
other party gave an equipment as boot to taxpayer (boot received), while the taxpayer paid cash for it (boot paid). No netting was involved and the value of the equipment (boot) was used to determine recognized gain.
i'm confused...why are some forms of boot netted and some aren't?
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Topic: recognized gain for like kind exchanges
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