ollie_w_holmes[at]yahoo.com wrote:

- quote -

The "swap" you referred to is a taxable event. You have a
taxable gain of $1,000. The other person has a taxable gain
of $11,000 less whatever his basis was in the land.

Your resulting basis in the land is $11,000. His resulting
basis in the stock is $11,000.

MTW

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ollie_w_holmes[at]yahoo.com wrote:

- quote -

Your basis is $10,000.

- quote -

Not like-kind, so a taxable event. You recognize $1,000 of
taxable gain on your sale of the stock. Your basis in the
land is $11,000.

- quote -

$11,000.

- quote -

No, because you did pay capital gains tax at the time of the
swap.

Phoebe

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- quote -

Not at all. The previous owner of the stock has a $1,000
long-term capital gain when the trade is made. His basis in
the land and the other party's basis in the stock are both
$11,000.

Phil Marti
Clarksburg, MD

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- quote -

There is no such thing as a tax-free "swap" of stock for
land. You are buying land. When you sign over the shares of
stock, you have a disposition. It is the same as a sale and
you report your gain on the Schedule D of the 1040. The
seller received $11,000 for the disposition of the land.
The seller will also report any gain or loss on the
disposition of the land. The seller's cost basis in the
shares of stock is $11000.

--
Alan
http://taxtopics.net

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Here is the scenario. You inherit stock in XYZ corp worth
$10000 on the date of death of a relative. One month later
the stock is worth $11000 and you swap it with another
person for the equivalent value of land. When the receiver
of the stock sells it, what is his basis: 10K or 11K? Next
question: If the answer is $11K, then doesn't this present
itself as a form of tax avoidance, namely both the buyer and
the seller could be exchanging appreciated assets that
neither really pays capital gains tax on if they are allowed
to declare the basis that applies on the date of the
exchange.

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