Mary exchanged an office building used in her business for some land. mary originally purchased the building for $45,000, and it had an adjusted basis of $20,000 at the time of the exchange. the land had a fair market value of $40,000. mary also gave $4,000 to the seller in the transaction. what is mary's adjusted basis in the land after the exchange?
the answer is: no, if this income is not likely to be reported to the government
if the income from the purchase is reported in taxes, the government could count it as a part of total consumption that occurs anually.
but since the construction for the fence is considered as 'odd jobs' , the payment would most likely being made 'under the table' (without any proof of records). this make the payment become ineligible for tax payment.