Tax Return Assignment | College Homework Help
An individual, in the taxable year, traded a house and lot which he held as a rental property for a house valued at $42,000 and a lot valued at $2,000 — also to be held e as a rental property.
He appraised his property at $46,000 and accepted a truck valued at $1,500 as full payment for the difference in value between the properties exchanged. His lot originally cost him $1,000 and the cost of his house after allowance for depreciation was $42,500.
How much gain does he have to report on his tax return?