[Mehwish]

I am using the Wiley book and Ninja notes.. I came across a few problems where someone receives boots (cash+unlike property+liability passed to other parties)…

Basically you subtract the boot you received to get to your new basis.

What if you gave boot? Say you assumed the liabilities? How would you figure out the gain than?

I’m assuming to figure out the basis you add all the boot given.

Does anyone have any sample problems regarding this? Please do post.

Thanks.

[Kls238]

You only record a gain when you receive boot, not paid. You would record the new asset at the FV of the asset given up. I don't have a sample question off hand, but i can look. Hope that helps.

Passed all sections.

[Kls238]

You only record a gain when you receive boot, not paid. You would record the new asset at the FV of the asset given up. I don't have a sample question off hand, but i can look. Hope that helps.

Passed all sections.

[Anonymous]

I believe in like-kind transactions where boot is both paid, the calculation is:

new basis = basis in old asset + gain recognized + boot paid – boot received

The amount of gain recognized is the lessor of the boot received or the amount realized in the transaction. That gain flows into the calculation of the new asset basis.

[Anonymous]

I believe in like-kind transactions where boot is both paid, the calculation is:

new basis = basis in old asset + gain recognized + boot paid – boot received

The amount of gain recognized is the lessor of the boot received or the amount realized in the transaction. That gain flows into the calculation of the new asset basis.

[Author]

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