MENU
There are some allowable methods for determining the basis of property received in exchange for other property. Which of the following is/are out those methods?
Suggested Answer: D
Get Premium CVA Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
32 comments · newest first
GE
Gerald
11 months ago
I’m not sure about A, that doesn’t sound right at all.
ET
Ettie
11 months ago
B is true, original price is key here.
VE
Venita
11 months ago
Wait, D seems off. Fair market value? Really?
HU
Huey
12 months ago
I agree, C sounds right to me!
SA
Sabra
12 months ago
A is definitely not a method.
SH
Shalon
1 year ago
I feel like option D might be misleading; I thought the basis was usually tied to the exchange value rather than just the fair market value at receipt.
RO
Rosamond
1 year ago
I'm a bit uncertain about option B; did we cover how the original price applies when property is received for services?
BE
Bernardo
1 year ago
I think option C sounds familiar from our practice questions, where we discussed unequal exchanges and how to adjust the basis.
JO
Jolene
1 year ago
I remember something about the fair market value being important, but I'm not sure if it's always the basis.
HI
Hillary
1 year ago
This is a tricky one, but I remember learning about these basis determination methods in class. I'll use the process of elimination to narrow it down.
ME
Merilyn
1 year ago
I've got a good handle on basis rules, so I think I can tackle this one. I'll methodically go through each answer choice and select the ones that are not allowable methods.
MA
Marilynn
1 year ago
Hmm, I'm a little unsure about the income basis option. I'll have to double-check the rules on that one. The other choices seem more clear-cut.
BE
Benedict
1 year ago
Okay, let's see here. The question is asking which of these methods are not allowed, so I'll need to think through each one and eliminate the ones that don't fit.
DA
Dawne
1 year ago
This question seems straightforward, but I want to make sure I understand the allowable methods for determining basis. I'll review the key points carefully.
AR
Aracelis
2 years ago
This question is so confusing, I think I need to exchange my brain for a new one. Maybe that'll give me a better basis to work with.
DO
Donte
1 year ago
C) The basis is the fair market value of the property exchanged for it, increased by any payments made or decreased by any payments received, when the two properties are of unequal value
RO
Rosita
1 year ago
B) If a taxpayer receives property for services, then the original basis of the property when it is received is its original price
BE
Becky
1 year ago
A) Income basis of tax on the property
ZO
Zona
2 years ago
I heard the IRS is offering a new 'basis of property' standup comedy tour. Apparently, it's a real knee-slapper.
TI
Timothy
2 years ago
B is just weird. Why would the original price matter if you're receiving the property for services? That doesn't seem right at all.
DE
Dell
1 year ago
C) The basis is the fair market value of the property exchanged for it, increased by any payments made or decreased by any payments received, when the two properties are of unequal value
PA
Paris
1 year ago
A) Income basis of tax on the property
MA
Marvel
2 years ago
I'm not sure, but I think the answer might be B.
KI
Kimbery
2 years ago
Income basis? What is this, a trick question? I'm pretty sure that's not a real thing. A is definitely out.
MA
Magnolia
2 years ago
D seems to make the most sense to me. The basis should be the fair market value of the property when it's received. Why overcomplicate things?
OM
Omega
2 years ago
I disagree, I believe the answer is D.
MA
Makeda
2 years ago
I'm pretty sure the correct answer is C. The basis is the fair market value of the property exchanged for it, increased by any payments made or decreased by any payments received, when the two properties are of unequal value. That's the standard rule for like-kind exchanges, right?
TH
Theodora
1 year ago
Exactly, it's important to understand the different methods for determining basis when dealing with property exchanges.
FE
Felix
1 year ago
So, the basis is the fair market value of the property exchanged, adjusted for any payments made or received. That makes sense.
WI
Wilda
1 year ago
Yes, C is the correct method for determining the basis of property received in exchange when the two properties are of unequal value.
IL
Ilene
1 year ago
I think you're right, C sounds like the correct answer for determining the basis of property received in exchange.
OL
Olga
2 years ago
I think the answer is C.