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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 926 |
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Loss from exchanges not solely in kind. If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain or loss, but also of other property or money, then no loss from the exchange shall be recognized...
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" If Brown Construction, Inc. had been the recipient of cash, the company might have had to recognize a portion of the gain, or take no loss, depending on the amount of the cash received. However, in this particular example, Brown Construction, Inc. is giving the cash, which does not trigger any recognition, as per the absence in the IRS code...
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Finding the Adjusted Basis
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