Dedriea contributes to her wholly owned corporation some tangible personal property she had used in her sole
Question:
Dedriea contributes to her wholly owned corporation some tangible personal property she had used in her sole proprietorship business and depreciated. She had acquired the property for $566,000 and had taken $431,000 of depreciation on it before contributing it to the corporation. At the date of the contribution, the property had a fair market value of $289,000. The corporation took $100,000 of depreciation on the property and then sold it for $88,000 in 2022. What are the tax status of the property to the corporation and the nature of the recognized gain or loss when the corporation sells the property?
Step by Step Answer:
The corporation has a carryover of Dedrieas basis and depreciation recapture potent...View the full answer
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
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