substituted basis

Definition of "substituted basis"
  1. The value of a received property in a like-kind exchange which is considered equivalent to the value of the property exchanged, while taking into account any additional payment received or profits and losses incurred
How to use "substituted basis" in a sentence
  1. In the property transaction, the accountant determined the substituted basis to ensure the fairness of the exchange.
  2. The IRS requires an accurate calculation of the substituted basis during a like-kind property transaction for tax purposes.
  3. Understanding the concept of a substituted basis is crucial for any real estate investor involved in property exchanges.

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