CPAnet Forum: Not Like-Kind Exchange

Active Topics

Memberlist

Help

REG STUDY GROUP
CPAnet Forum : REG STUDY GROUP

Topic: Not Like-Kind Exchange (

Topic Closed)

Author

Message

<< Prev Topic | Next Topic >>

JD7612
Regular
Regular

Joined: 11 Sep 2010
Online Status: Offline
Posts: 122

Posted: 18 Jul 2011 at 22:28 \| IP Logged

If a truck with a basis of $6000 with cash payment of $17000 is exchanged with a new car with a FMV of $28000. What is my basis for the new car? Thank you.

cocacpa
Newbie
Newbie

Joined: 19 Dec 2010
Online Status: Offline
Posts: 29

Posted: 19 Jul 2011 at 07:33 \| IP Logged

i think the new basis = $6000 + $17000 =$23000
but not 100% sure since becker 2010(i only have 2010 material) does not mention this situation.

nolifecpa
Regular
Regular

Joined: 12 Jun 2010
Online Status: Offline
Posts: 135

Posted: 19 Jul 2011 at 16:50 \| IP Logged

If the truck was used solely for business purposes and the new car is going to be used in business, cocacpa is correct...new basis will be $23,000 = 17,000 Basis of truck + 6,000 cash(boot paid)

__________________
REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76
FAR-67,66
AUD-54,60's,65,83*
*expired

JD7612
Regular
Regular

Joined: 11 Sep 2010
Online Status: Offline
Posts: 122

Posted: 19 Jul 2011 at 17:02 \| IP Logged

Thanks. What if the car is not for business?

BRAF=CPA
Contributor

Joined: 03 Jun 2010
Online Status: Offline
Posts: 54

Posted: 19 Jul 2011 at 17:18 \| IP Logged

JD7612 wrote:

Thanks. What if the car is not for business?

Then i would think that since the exchange isnt "like-kind" the realized gain is recognized ($5,000) and the new basis is the value of the new car.

__________________
BEC - 84
REG - 79
AUD - 92
FAR - 82

I did it!

Sorry, you can NOT post a reply.
This topic is closed.

Printable version

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum