In the example for line 18, the FMV is likely the selling price or asking price for A's property.
A's adjusted basis starts with the original purchase price but includes much more. A discussion of adjusted basis can be found in IRS publication 551. Table 1 of the publication shows examples of increases and decreases to basis.
The instructions for line 15 of IRS form 8824 are here. (page 3)
Line 15
Include on line 15 the sum of:
See the example in the instructions for line 18.
Reduce the sum of the above amounts (but not below zero) by any exchange expenses you incurred.
The following rules apply in determining the amount of liability treated as assumed.
In the worksheet, the additional info regarding Like-kind Property Given up? On Line "O" what should be the amount of Regular Tax vs AMT. I don't understand this. Can you give an example?
In Example Line 18, I assume FMV is the current selling property value and adjusted base is the original payng price?
In the example for line 18, the FMV is likely the selling price or asking price for A's property.
A's adjusted basis starts with the original purchase price but includes much more. A discussion of adjusted basis can be found in IRS publication 551. Table 1 of the publication shows examples of increases and decreases to basis.
I have a similar question but the replies so far do not answer. My question: Do I include exchange expenses such as real estate agent commissions, QI fees and other selling expenses on Form 8824 Summary worksheet line L and on Line 15 Calculations Smart worksheet line A? Or is this just amount of boot (prorated rents to buyer, property taxes, pre-sale repairs, etc paid in escrow from sales proceeds)? Thank you.