Marcie owns a 10 percent interest in a shopping mall located in Portland, Maine. Her adjusted basis for her interest is $250,000, and its fair market value is $900,000. She exchanges it for undeveloped land in York, Pennsylvania, that is held by her sister, Sandra. Marcie is aware of the §1031 related-party requirement that neither she nor Sandra dispose of the property received for a two-year period. Both Marcie and Sandra intend to hold the properties as long-term investments. However, they agree to notify each other if a disposition does take place within two years of the exchange.
During the next six months, the land that Marcie received in the exchange continues to appreciate. Due to poor management, however, the value of Sandra’s interest in the shopping mall declines to $700,000. As a result, Sandra is angry with Marcie and vows “never to speak to Marcie, her husband, or any of Marcie’s children again.” As Marcie receives no communication from Sandra during the next 18 months, she assumes that her gain of $650,000 will continue to be deferred. Evaluate Marcie’s assumptions and justify your answer
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more