Mrs. Adams owned an income property with an adjusted cost basis of $160,000 and a fair market value of $240,000. She exchanged t

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Mrs. Adams owned an income property with an adjusted cost basis of $160,000 and a fair market value of $240,000. She exchanged t

he property for another income property which had a fair market value of $230,000. Both properties had no loans against them and no adjustment was made for the differences in value. For federal income tax purposes, the new property will have a basis for Mrs. Johnson of:

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1 answer:

ella [17] · Answer 1 · 2022-10-11T12:40:57+03:00

Answer:

$160,000

Explanation:

Based on the information given For FEDERAL INCOME TAX PURPOSES, the NEW PROPERTY will have a BASIS for Mrs. Johnson of:$160,000

reason been that Adams owned an income property with an ADJUSTED COST BASIS of the amount of $160,000 and secondly the COST BASIS of the property that was traded will be the COST BASIS for the property that was acquired assuming NO ANY adjustment was made for differences in value.