Is A taxed on the transfer of the land? Is B taxed on the receipt of...

  

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Is A taxed on the transfer of the land? Is B taxed on the receipt of stock for services? If A's land were worth $79 and she transferred it for 79% of the stock and B's services were worth $21 so he received 21% of the stock is A taxed? Suppose B's services were worth $19 so he also transferred $2 in cash to get the 21% of the stock. Does your answer to the prior question change? (See the bottom of page 7) Suppose A's land is worth $100,000 (adjusted basis is $500). Dog Corp wants to acquire the land. A transfers the land in exchange for $100,000 worth of stock which is 2% of Dog Corp. Canine owns 90% of Dog and agrees to transfer $1 in exchange for 1 additional share of Dog. Is A taxed on the transfer of the land? Suppose A transfers land worth $85 with an adjusted basis of $10 in exchange for 85% of the stock of Dog Corp. B provides services to Dog Corp in exchange for the remaining 15% of the stock. Is A taxed on the transfer of the land? Is B taxed on the receipt of stock for services? If A's land were worth $79 and she transferred it for 79% of the stock and B's services were worth $21 so he received 21% of the stock is A taxed? Suppose B's services were worth $19 so he also transferred $2 in cash to get the 21% of the stock. Does your answer to the prior question change? (See the bottom of page 7) Suppose A's land is worth $100,000 (adjusted basis is $500). Dog Corp wants to acquire the land. A transfers the land in exchange for $100,000 worth of stock which is 2% of Dog Corp. Canine owns 90% of Dog and agrees to transfer $1 in exchange for 1 additional share of Dog. Is A taxed on the transfer of the land? Suppose A transfers land worth $85 with an adjusted basis of $10 in exchange for 85% of the stock of Dog Corp. B provides services to Dog Corp in exchange for the remaining 15% of the stock.

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Based on the information provided lets break down each scenario 1 A taxed on the transfer of the lan... View the full answer