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5 Cards in this Set
- Front
- Back
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Non taxable exchange
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Realized gain or loss is not recognized
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If no boot involved
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Tax basis : basis of property surrended= Fair Market Value of property received - deferred gain/+ deffered loss
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Realied gain when boot received
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up to Fair Market Value of boot
- Boot cannot increase the amount of realized gain - Receiving boot does not cause loss recognition |
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Receiving Boot
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Basis of property surrended + gain recognized -FMV of boot received.
or FMV of qualifying property recevied - defferred gain/+ deferred loss |
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Paying Boot
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Basis of qualifying property surrended + FMV of boot paid
or FMV of qualifying property received - deferred gain/+ deferred loss |
