I am lost as how to reflect the deferred gain on tax return:
Taxpayer did a like-kind exchange in 2006 and had the following:
Purchase Price of LKE Property: 173,179
Realized Gain: 85,838
Recognized Gn: 21,395
Deferred Gain: 64,444
Basis of L-K Pr: 87,693
So in 2011 taxpayer sells the property that he received in the like-kind exchange for $161,000.
Taxpayer's current basis for the property is $88,407 (due to improvements after the exchange and closing costs of sale) leaving him a gain of $72,593. Being he has already paid tax on the $21,395 in 2006, how do I show that only $51,198 is taxable?
Taxpayer did a like-kind exchange in 2006 and had the following:
Purchase Price of LKE Property: 173,179
Realized Gain: 85,838
Recognized Gn: 21,395
Deferred Gain: 64,444
Basis of L-K Pr: 87,693
So in 2011 taxpayer sells the property that he received in the like-kind exchange for $161,000.
Taxpayer's current basis for the property is $88,407 (due to improvements after the exchange and closing costs of sale) leaving him a gain of $72,593. Being he has already paid tax on the $21,395 in 2006, how do I show that only $51,198 is taxable?