Ownership in his solely owned apartment


An individual, pursuant to a divorce decree, transfers ownership in his solely owned apartment building to his wife. The FMV of the property is $350,000, with an associated debt of $50,000. He purchased the property 10 years ago for $100,000 and has depreciated the property 40,000. He will have the following gain:

a. Forgiveness of indebtness $50,000, gain on the property of $290,000

b. There is no gain or loss

c. Forgiveness of indebtness $50,000

d. None of the above

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Accounting Basics: Ownership in his solely owned apartment
Reference No:- TGS050512

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