Jack exchanged land with an adjusted basis of $65,000 subjec…

Jack exchanged land with an adjusted basis of $65,000 subject to a liability of $22,000 for $50,000 (FMV) of stock owned by Hayden. Hayden takes the land subject to the liability. Jack incurs $500 of selling expenses. What is the amount of Jack’s realized gain on the exchange?

In 2022 Bonnie, a sole proprietor, loaned her employee, John…

In 2022 Bonnie, a sole proprietor, loaned her employee, John, $10,000 to help him buy a car. In 2024, before he repaid the $10,000, Bonnie told John that she was “tearing up” the $10,000 note in recognition of his strong job performance. How should John treat the amount forgiven?