[Anonymous]

When both parties put up boot, what are the netting rules? Becker seems to have left those out…

When they are identical boot (i.e., cash and cash; mortgage and mortgage), are we supposed to net? And if not identical (i.e., cash and trailer), we are not to net them?

Thanks for any input.

[Anonymous]

Here is something I posted in another thread. There are a ton of examples in the white paper that really clarified things for me. Too bad they didn't just include all this in the first place!

**********

I also had a hard time with like-kind exchanges and found this 25 page white paper Becker put out, including tons of examples, with the following explanation:

“Becker Professional Education is committed to providing our students with the most comprehensive coverage

for topics tested on the CPA exam. Some of our students have expressed a desire for additional examples and

practice questions related to Like‐Kind Exchanges which is covered on Page R1‐51 of the Regulation textbook.

Although we believe that the information in our textbook is sufficient coverage for questions contained in the

CPA exam, we are dedicated to our students and are happy to provide such information to you in our online

addendum.”

That must be their way of saying, yah, we realize now we did a lousy job with this, but we're not admitting any real fault.

Created with Compare Ninja

[Never_Give_Up1]

Remember, recognition of boot comes down to the lesser of boot received or realized gain. The cash you pay out is netted against the cash received to determine the recognized amount.

Granted I took REG about 4 months ago so my memory could be fuzzy… but if I am wrong someone please correct me.

FAR - 81
REG - 81
AUD - 82
BEC - 81

Ethics - Done
State License Exam - Done

License - Licensed CPA in Utah

[Anonymous]

Haha! Thanks for the PDF with lots of great info!

[Author]

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