Risa exchanges an office building with a $600,000 adjusted basis for an apartment building with a $1,000,000 FMV and $200,000 of marketable securities. The other party indicates he had paid $175,000 for the securities a year earlier. What is Risa's basis for the securities?

Question

Quizplus · Accepted Answer

Risa's basis for the securities is their fair market value at the time of the exchange, which is $200,000.

Risa Exchanges an Office Building with a $600,000 Adjusted Basis