Question

In: Accounting

Abbie exchanged the following business assets. Which situation exemplifies a fully nontaxable exchange for Abbie? An...

Abbie exchanged the following business assets. Which situation exemplifies a fully nontaxable exchange for Abbie?

An improved lot traded to Iva for a rental house. Abbie paid the $2,000 selling expense.

An unimproved lot in South Carolina traded for Terrell's unimproved lot in Canada.

A delivery van traded with Nina for a refrigerator unit.

A commercial sewing machine and $5,000 traded with Rosie for another commercial sewing machine.

Solutions

Expert Solution

ANSWWER :-

  • A Commercial Sewing machine and $ 5,000 traded with roise for another commercial sweing machine will be consider as examplifies a full nontaxable due to exchange to be non taxable it should be same asset class like vehicles for vehicles, computer for computer and machine for mchine
  • An improved lot traded to iva for a rental house. abie paid the $ 2,000 selling expendse is not consider due to :- exchange of patnership interest is not qualify
  • A delivery van traded with Nina for a refrigerator unit not echange for Same Exchange is not conside as exemplifies a fully nontaxable due to :- as per section 1031 (a) like kind exchange :- exchange of Invetory is not qualifiy
  • An unimproved lot in South Carolina traded for Terrell's unimproved lot in Canada is not conside as exemplifies a fully nontaxable due to :-
    as per section 1031 (a) like kind exchange :- exchange within the U.S. is qualify

ekkarill92 answered 2 years ago
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