Melissa owns a residential lot in Spring Creek that has appreciated substantially in value. She holds the lot for investment. She is exchanging the lot with her father for a residential lot in McComb that she also will hold for investment. Please identify any relevant tax issues for Melissa.© BrainMass Inc. brainmass.com June 19, 2018, 11:49 am ad1c9bdddf
Since the lot Melissa owns has appreciated substantially, she would more than likely want to try and get the
exchange to qualify for § 1031 ...
The solution provides a discussion for land exchanges in investment purposes, and the accounting treatment for the exchange.