Reddy transfers land (fmv of $55,000 and basis of $15,000) for 45% of RBB Co and...

 

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Reddy transfers land (fmv of $55,000 and basis of $15,000) for 45% of RBB Co and $10,000 cash. Bluey transfers a truck (fmv of $45,000 and basis of $50,000) for 45% of RBB Co. Bingo provides services for his 10% interest in RBB Co. Does Section 351 apply? Reddy transfers land (fmv of $55,000 and basis of $15,000) for 45% of RBB Co and $10,000 cash. Bluey transfers a truck (fmv of $45,000 and basis of $50,000) for 45% of RBB Co. Bingo provides services for his 10% interest in RBB Co. Does Section 351 apply?

Answer rating: 100% (QA)

ANSWER Section 351 of the Internal Revenue Code allows for the taxdeferred exchange of property for ... View the full answer