Will exchanges a building with a basis of $35,000, and subject to a liability of $30,000, for land with a FMV of $50,000 owned by Jane. Jane takes the land subject to the liability. The amount realized by Will is

Question

Quizplus · Accepted Answer

The amount realized by Will is the fair market value of the land received ($50,000) plus the liability assumed by Jane ($30,000), totaling $80,000.

Will Exchanges a Building with a Basis of $35,000, and Subject