And you would deduct the cash first, then the property, then the capital gains assets…in that order, right? Our instructor for the review says you use the property 30% first, then the cash, then 20% cap gains assets. A number of people have asked him about this discrepancy from his teaching compared to how our book solves the problem.
I have always taken the cash first. In fact, I found in our book where it says to take the cash 50% first, and he keeps saying to take the 30% first. He messes up other things, so I am getting frustrated. 🙂
Does it make a difference in the roll over where the deduction amount came from. (i.e. $4000 rollover from the 50% basket or $4000 from the 30% basket?)