NACVA Exam CVA Topic 4 Question 101 Discussion

Actual exam question for NACVA's CVA exam

Question #: 101
Topic #: 4

[All CVA Questions]

There are some allowable methods for determining the basis of property received in exchange for other property. Which of the following is/are out those methods?

AIncome basis of tax on the property

BIf a taxpayer receives property for services, then the original basis of the property when it is received is its original price

CThe basis is the fair market value of the property exchanged for it, increased by any payments made or decreased by any payments received, when the two properties are of unequal value

DThe basis is the fair market value of the property when its is received

Show Suggested Answer

Suggested Answer: D

by Izetta at Oct 22, 2024, 09:37 AM

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Aracelis

3 days ago

This question is so confusing, I think I need to exchange my brain for a new one. Maybe that'll give me a better basis to work with.

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Zona

6 days ago

I heard the IRS is offering a new 'basis of property' standup comedy tour. Apparently, it's a real knee-slapper.

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Timothy

11 days ago

B is just weird. Why would the original price matter if you're receiving the property for services? That doesn't seem right at all.

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Marvel

12 days ago

I'm not sure, but I think the answer might be B.

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Kimbery

12 days ago

Income basis? What is this, a trick question? I'm pretty sure that's not a real thing. A is definitely out.

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Magnolia

13 days ago

D seems to make the most sense to me. The basis should be the fair market value of the property when it's received. Why overcomplicate things?

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Omega

14 days ago

I disagree, I believe the answer is D.

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I'm pretty sure the correct answer is C. The basis is the fair market value of the property exchanged for it, increased by any payments made or decreased by any payments received, when the two properties are of unequal value. That's the standard rule for like-kind exchanges, right?

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Olga

25 days ago

I think the answer is C.

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NACVA Exam CVA Topic 4 Question 101 Discussion

Contribute your Thoughts:

Aracelis

Zona

Timothy

Marvel

Kimbery

Magnolia

Omega

Makeda

Olga