CCH Federal Taxation Basic Principles
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“Net boot received” however is a tricky concept. Generally, 3 rules apply to NBR: 1.Mortgage relief may be offset by any boot given, except boot in rule 3 below. 2.Mortgage assumptions may offset only mortgage relief. 3.The basis of inventory, stock and other intangible property given may not offset the FMV of any boot received.
Tax Treatment for Gain or Loss
Chapter 11, Exhibit 12d