[needhelpnow]

Shareholder Basis:

+ Adjusted Basis of the (Old) Property Transferred

+ Gain Recognized (If less than 80%)

+ Boot Paid (Cash paid & Liab assumed)

– Boot Received (Cash rec & Liab Relief)

= Shareholder Basis

My questions are:

1) What is included in the Gain Recognized? Is it the LESSER of Realized Gain or Boot Received?

2) If that is the case, then what is included in Realized Gain or Boot Received? Because there is no FMV of new property here. Does that make sense?

3) Is Boot received “Cash Received+Liab Relief-Liab Assumed”?

I get confused here. Someone please help! Thank you