Robbie and Mike Exchange Rental Houses in a Qualified Like-Kind

question 68

Essay

Robbie and Mike exchange rental houses in a qualified like-kind exchange. Robbie's old rental house, which originally cost $142,000, has an adjusted basis of $126,000. His rental house is worth $132,000. Since the rental house Mike is trading is worth only $127,000 (Mike's basis is $118,000), Mike will even up the exchange by giving Robbie $5,000 in cash.
a.What is Robbie's realized gain (loss) on the rental house?
b.What is Robbie's recognized gain (loss) on the rental house?
c.What is the character of Robbie's gain or loss on the rental house?
d.What is Robbie's basis in his new rental house?

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Definitions:

I/O Addressing

The method or scheme by which inputs and outputs are identified and accessed by a control system, allowing for data exchange with specific external devices or sensors.

Protective Ground Wires

Cables designed to safely direct excess electrical energy from a circuit or device to the earth, reducing the risk of electric shock or fire.

Operating Temperature

The range of temperature within which a device, component, or system is designed to function effectively without degrading performance or reliability.

30ºC

A temperature value, often referenced in the context of operational or environmental conditions under which equipment or processes are designed to function efficiently.