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8 March, 22:02

Which of the following statements about the inclusion of boot in a nontaxable exchange is false? Multiple Choice The purpose of including boot in a nontaxable exchange is to equalize the adjusted tax bases of the properties exchanged. The receipt of boot can trigger gain recognition but not loss recognition. The party paying the boot includes the FMV of the boot in the tax basis of the property received. None of the above is false.

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  1. 9 March, 00:41
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    The purpose of including boot in a nontaxable exchange is to equalize the adjusted tax bases of the properties exchanged.

    Explanation:

    A nontaxable exchange is a trade wherein you are not exhausted on any addition, and you cannot deduct any loss. On the off chance that you get property in a "nontaxable business", its premise usually is equivalent to the assumption of the property you moved. A nontaxable increase or misfortune is otherwise called an unrecognized addition or misfortune.
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