Question: In January 2014 Wanda transferred machinery worth 200 000 adjusted basis

In January 2014, Wanda transferred machinery worth $200,000 (adjusted basis of $30,000) to a controlled corporation, Oriole, Inc. The transfer qualified under § 351.
Wanda had deducted $165,000 of depreciation on the machinery while it was used in her proprietorship. Later in 2014, Oriole sells the machinery for $190,000. What are the tax consequences to Wanda and to Oriole on the sale of the machinery?

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  • CreatedMay 25, 2015
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