Andrew owns land (adjusted basis of $94,400) that he uses in his business. He exchanges the land and $47,200 in cash for a different parcel of land worth $113,280. May Andrew avoid like-kind exchange treatment to recognize his realized loss of $10,000? Explain

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Business

Beckham

8 April, 05:58

Andrew owns land (adjusted basis of $94,400) that he uses in his business. He exchanges the land and $47,200 in cash for a different parcel of land worth $113,280. May Andrew avoid like-kind exchange treatment to recognize his realized loss of $10,000? Explain

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Ali Dickerson · Answer 1

Andrew did do a proper feasibility study about the land

Explanation: Andrew lots chunk of money because he gave out his land half of the price he bought it initially. And bought another at a higher price

which is more than the 10,000 dollars