Question: Sabrina is going to contribute an SUV to her wholly
Sabrina is going to contribute an SUV to her wholly owned business. Shepur chased the SUV three years ago for $58,000 and used it exclusively for personal purposes during this period. The fair market value of the SUV is $40,000. Are the tax consequences different if Sabrina contributes the SUV to an S corporation in which she is a 100% shareholder rather than a C corporation in which she is a 100% shareholder? If the business is a sole proprietorship? Explain.
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