Question Which of the following statements is false? A. In a like-kind exchange under IRC1031,...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Question Which of the following statements is false?
A. In a like-kind exchange under IRC1031, the assumption or payoff of liabilities by one party to the exchange results in boot received by the other party.
B. If boot is received in a 1031 like-kind exchange and gain is recognized, the following formula correctly calculates the basis of the like-kind property received: the fair market value of like-kind property received, less any gain NOT recognized (less deferred or postponed gain).
C. The receipt of cash, the relief from debt, or receipt on non-like-kind property by a party to a IRC1031 exchange is colloquially referred to by tax practitioners as "boot." The amount of boot received sets the ceiling on the amount of gain that is recognized for tax purposes.
D. The taxpayer who assumes a liability in a 1031 like-kind exchange receives boot in the amount of the liability and may recognize gain up to that amount.
E. Only A & C are true.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
