Land A = Adjusted Basis = 190,000 , Stock Fair Market value = 10,000 Adjusted Basis...

Question

Question

Land A = Adjusted Basis = 190,000 , Stock Fair Market value = 10,000 Adjusted Basis =4000

Land B = Fair Market value 240,000

What is realized Gain ? what is Recognized gain ?

what is the basis for land B ?

Answer 1

Answer #1

Land A
Adjusted Basis ($) (a)	1,90,000
Stock Fair Market Value($)	10,000
Adjusted Basis ($)(b)	4,000
In case of Land A
Adjusted Basis ($)(a+b)=c	1,94,000
FMV(d)-$	10,000
There fore FMV is less than Adjusted basis
so No realized Gain($)(d-c)	(1,84,000)

Land B
FMV( d)$	2,40,000
Adjusted Basis ($)(a+b)=c( $)	1,94,000
Realized Gain (d-c)$	46,000

Above Question based on Realized gain / loss based on FMV and adjusted basis .

US CODE 1011 is talking about " adjusted basis to calculate Capital Gain / Loss from the disposition of property

Answer 2

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