Question

Tracy owns a nondepreciable capital asset held for investment. The asset was purchased for $ 250 comma 000 six years earlier and is now subject to a $ 75 comma 000 liability. During the current​ year, Tracy transfers the asset to Tim in exchange for $ 94 comma 000 cash and a new automobile with a $ 50 comma 000 FMV to be used by Tracy for personal​ use; Tim assumes the $ 75 comma 000 liability.
Requirement

Determine the amount of TracyTracy​'s LTCG or LTCL.
​(Use parentheses or a minus sign to enter a​ loss.)

Tracy will realize a long-term capital gain or loss of ___.

Answer 1

Answer:

(94,000 + 50,000 + 75,000) - 250,000 = (31,000)

[amount realized]