In a tax-deferred transaction, the calculation of a taxpayer's tax basis in property received always begins...

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In a tax-deferred transaction, the calculation of a taxpayer's tax basis in property received always begins...

In a tax-deferred transaction, the calculation of a taxpayer's tax basis in property received always begins with its cost to the taxpayer.

True/False?

business accounting

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Answer 1

Answer #1

Answer :-

The Correct answer is - False

Explanation :-

As in the question it was given that, In a tax-deferred transaction, the calculation of a taxpayer's tax basis in property received always begins with its cost to the taxpayer is not true. Taxpayer's tax basis in property received is not begins with its cost to the taxpayer.

Taxpayer's tax basis in property received begin property amount exchange in the transaction. Not its cost to the taxpayer.

So the Correct Answer is False.

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Answer 2

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In a tax-deferred transaction, the calculation of a taxpayer's tax basis in property received always begins...

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