Question

anya owns land with an adjusted basis of $305,000, subject to a mortgage of $175,000. on april 1, 2023, anya sells her land subject to the mortgage for $325,000 in cash, a note for $300,000, and property with a fair market value of $60,000. what is anya's amount realized on this sale?

Answer 1

Anya's amount realized from the sale of her land is $685,000, which is the sum of $325,000 in cash, a $300,000 note, and property worth $60,000.

Step-by-step explanation:

The question asks for the calculation of Anya's amount realized from the sale of her land, which includes various components such as cash, a note, and other property.

To determine Anya's amount realized, we sum up the following: the cash received ($325,000), the note received ($300,000), and the fair market value of the additional property received ($60,000). The amount subject to mortgage does not directly affect the amount realized, although it does have implications for Anya's gains and potential debt relief.

So, Anya's amount realized on the sale is calculated as follows: $325,000 (cash) + $300,000 (note) + $60,000 (property value) = $685,000.