Bluff purchased equipment for business use for $35,000 and m…

Bluff purchased equipment for business use for $35,000 and made $1,000 of improvements to the equipment. After deducting depreciation of $5,000, Bluff gave the equipment to Russet for business use. At the time of the gift was made, the equipment had a fair market value of $32,0000.Ignoring gift tax consequences, what is Russet’s basis in the equipment?

Dawson, Inc’s warehouse (with an adjusted tax basis of $75,0…

Dawson, Inc’s warehouse (with an adjusted tax basis of $75,000) was destroyed by fire. The following year, Dawson received insurance proceeds of $195,000 and acquired new warehouse for $167,000. Dawson elected to recognize the minimum gain possible.What is Dawson’s basis in the new warehouse?

A taxpayer is trading real property used solely for business…

A taxpayer is trading real property used solely for business purposes for new real property to be used in his business. The real property originally cost $35,000 and he has taken $12,000 in depreciation. The old real property is currently worth $20,000 and the new real property wants in exchange is only worth $16,500. Teh other party agrees to give the taxpayer $3,500 in cash in addition to the new real property.What is the taxpayer’s basis in the new real property received?