Showing posts with label Fred. Show all posts
Showing posts with label Fred. Show all posts

Thursday, October 17, 2019

If Pam transfers an asset to Fred and the asset is subject to a liability that is assumed by​ Fred, how does​ Fred's

If Pam transfers an asset to Fred and the asset is subject to a liability that is assumed by​ Fred, how does​ Fred's assumption of the liability affect the amount realized by​Pam? How does​ Fred's assumption of the liability affect his basis for the​ property?


PI:5-34
Dexter receives a duplex as a gift from his uncle. The​ uncle's basis for the duplex and land is $170,000. At the time of the​ gift, the land and building have FMV s of $52,000 and $78,000​, respectively. No gift tax is paid by Dexter's uncle at the time of the gift.
Requirements


a) (170000*52000) / (52000+78000)
b) (170000*78000) / (52000+78000)
c) No since FMV(52000+78000) is Less Than the donor's basis (170000)
   - therefore Yes if xx Greater Than xx.