Beth in Case Study Problem I:16-67 also wants to know whether she can make a ($50,000) capital
Question:
Beth in Case Study Problem I:16-67 also wants to know whether she can make a \($50,000\) capital contribution to the corporation without the corporation’s issuing additional shares.
If so, should she have the corporation issue the shares or not? Assume that Beth’s basis in her stock is \($40,000\) and that she files a joint return with her husband.
A partial list of research sources is:
• Sec. 1244(d)(1)(B)
• Reg. Secs. 1.1244(c)-1
(b) and 1.1244(d)-2(a)
• Sol Lessinger v. CIR, 63 AFTR 2d 89-1055, 89-1 USTC ¶9254 (2nd Cir., 1989)
• James D. Pierce, 1989 PH T.C. Memo ¶89,647, 58 TCM 865 (1989).
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Related Book For
Pearsons Federal Taxation 2024 Individuals
ISBN: 9780138238100
37th Edition
Authors: Mitchell Franklin, Luke E. Richardson
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