Ch 9

500K 500K 100K taxable gain 400000 tax 84000

200K 700K 400K boot 500K 300K 100K Realized gain 400,000 Sale 700000 Basis 200000 Gain 500000 Boot 400000 Nontaxable 100000

number 1 FMV 16,000 Basis 9,300 a Realized Gain 6,700 Recognized Gain 6,700 Basis 16,000 b Realized Gain 6,700 Recognized Gain - Basis 9,300 c Sale Price Basis Recognized Gain Taxable 16,850 16,000 850 Nontaxable 16,850 9,300 7,550 Number 3 Rufus Hardy Basis 50,000 60,000 FMV 77,500 90,000 12,500 Realized Gain 27,500 30,000 Recognized Gain - 12,500 boot Buy $90K Buy $77,500 Cost basis: Original Property 50,000 60,000 +Boot Paid 12,500 - +Gain Recognized - 12,500 -Boot Received - (12,500) 62,500 60,000 New Property Price 90,000 77,500 Deferred Gain (27,500) (17,500) 62,500 60,000 Number 4 1,700 1,700 FMV 32,000 30,300 30,300 36,500 Basis 20,000 a b c d e Realized Gain 12,000 12,000 10,300 10,300 16,500 Recognized Gain 12,000 - 10,300 - 16,500 Basis 32,000 20,000 32,000 21,700 32,000 4,500 New Prop 32,000