Asset cost and like-kind exchange problems

Related BrainMass Solutions

• Importance of Like-Kind Exchanges

  A like-kind exchange is an event whereby a taxpayer disposes of an asset and acquires a substantially similar asset without incurring an income tax liability.

• Nontaxable exchanges - Like kind exchange of a vehicle

  The reason it works that way is for the layers of depreciation and the calculation of gain, but because it is a personal asset, the like-kind exchange rules don't apply and therefore the holding period is a moot point.

• Like kind exchanges including depreciation methods

  The solution explains the rationale for six different tax problems involving depreciation, sales, and like kind exchanges.

• Challenges in recording and fairly valuating fixed assets

  If a trade-in of another fixed asset was involved, there are calculations to make in order to determine value in a like kind exchange. 4.

• G&G exchanged an old asset plus cash for a new asset.

  This is a true statement because a real like-kind exchange reports no taxable gain. C. This is a true statement because in a like kind exchange the basis in the new property = the basis in the old plus the cash given up.

• Accounting for Machine improvements and exchanges

  The like kind exchange of an asset is allowable without resulting in a gain or loss transaction on the income statement.

• Section 1031, Like Kind Exchanges

  She now feels that like kind exchanges will be the solution to all of her tax problems.

• Depreciation Deductions & Realized and Recognized Gain/Loss

  There are explanations and notes for each asset to explain the amount of depreciation taken. Like Kind exchange provisions are discussed and applied as needed. It's a very comprehensive problem.

• Olsen Company: Journalize asset transactions

  Even if this had been a like kind transaction, any loss would have reported currently and not deferred into the new asset under the assumption of conservatism.