[niggy]

Non taxable exchange of real estate

B: FMV 400,000

Mortgage (100,000)

W: FMV 525,000

Mortgage (225,000)

If B’s adjusted basis was 240,000, compute B’s realized gain, recognized gain, basis in W.

I calculate realized gain is 160,000, recognized gain is 100,000, basis in W is 465,000.

Could anybody tell me if my calculations right or wrong?

Please reply with detailed calculation, thank you!!!

AUD - 76 (May 2012)
BEC - 81 (July 2012)
REG - 61 (Aug 2012), rematch 83 (October 2012)
FAR - 85 (May 2013)

Based on Becker 2012 self-study.
Currently licensed PA CPA since July 2013.