Becker doesn't teach this area in a journal entry format. They teach it in the steps I just showed above. Computer amt realized then amt recognized then basis. I seriously have spent so much time to mastering this topic I think I finally understand it. Then I get this question and I'm ALL MESSED UP lol
Well, I do think we should move on as for the numbers. But I would also like to clarify whether cash received/given is netted with liabilities assumed/relieved when we determine gain…
I think it is dpd… because boot paid is the same as saying liability assumed. And boot received is the same as saying relief of liability. So it would make sense that you should be able to net them to compute net boot. Conversely, if the boot paid or received is property (ex. trailer, car) then no it wouldn't be netted. I had this questions a few days ago, when i was working these problems out and sometimes it would be property received or cash received. And @jstay clarified, when it's the former it's not netted and when it's the latter it is.
Thanks cpa8488, I think you're right. It's property that can't be netted. And hey, I will fist pump in the Prometric room when I do get that ONE like-kind question.
Just thought I would post this for anyone who wants to try!
Jay received a court award for damages to his personal reputation by the National Gossip. He also received punitive damages. Which of the following statements is true?
Only the compensatory damages are taxable.
All of the damages are taxable.
None of the damages are taxable.
The compensatory damages are not taxable, but the punitive damages are taxable.
.