Question

There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this property, approached John to discuss the idea of selling it to him. John is interested. Ellen knows that John owns a vacant lot downtown (referenced in the case study facts) and proposed an exchange. She told John there may be a tax advantage for John in doing so. The land next to Playful Paws is worth $100,000. In addition to the land, Ellen will pay John $20,000 cash at closing. John owns a vacant lot near downtown that they rent as parking space during special events (arts festival, summer concerts, etc.). He inherited this parcel from his uncle (Mira’s brother) in 2010. His uncle purchased it for $52,000 in 1995. The value at the time of his uncle’s death was $82,000. This is a dirt lot; John has made no improvements to it. Real estate taxes are $600 this year.

          There is a parcel of land next to the Playful Paws, Inc. building. Ellen, the owner of this property, approached John to discuss the idea of selling it to him. John is interested. Ellen knows that John owns a vacant lot downtown (referenced in the case study facts) and proposed an exchange. She told John there may be a tax advantage for John in doing so. The land next to Playful Paws is worth $100,000. In addition to the land, Ellen will pay John $20,000 cash at closing.
John owns a vacant lot near downtown that they rent as parking space during special events (arts festival, summer concerts, etc.). He inherited this parcel from his uncle (Mira’s brother) in 2010. His uncle purchased it for $52,000 in 1995. The value at the time of his uncle’s death was $82,000. This is a dirt lot; John has made no improvements to it. Real estate taxes are $600 this year.

Added by John I.

Question

Please give Ace some feedback