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Posted by Drew Edmundson on March 12, 2007, 8:34 pm
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> How do you determine the basis for a property received in a
> like-kind exchange?
>
> Scenario: Residential rental townhome with basis of
> 50,000.00 placed in service in 1985 under ACRS/19 years.
> Property has depreciated out. 2005 casualty loss of
> 43,000.00 due to Hurricane Wilma. Property exchanged for
> another residential rental townhome in different state (FMV
> 106,000.00) in 2006. How would you go about calculating the
> depreciable basis of the property received in the exchange?
This sounds like a 1033 involuntary conversion not a 1031
like kind exchange. Note the reference to Hurricane Wilma.
I am confused by the term "casualty loss". Have you already
claimed a loss on your return? How much did you receive
from the insurance company? What were the steps taken to
accomplish transaction? It looks like we are missing facts.
--
Drew Edmundson, CPA
Cary, NC
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