Ellen received a liquidating distribution from Lopas Corp. as part of a redemption of all of its

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Ellen received a liquidating distribution from Lopas Corp. as part of a redemption of all of its stock. Ellen’s basis for her Lopas stock was

$13,000. In exchange for her stock, Ellen received property with a $10,000 basis and a

$35,000 fair market value that is subject to a

$18,000 mortgage, and also received cash of

$15,000.

a. What is Ellen’s realized and recognized gain from this complete liquidation?

b. What is Ellen’s tax basis for the non-cash property he received?

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 27, 2024 03:06 AM

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Ellen received a liquidating distribution from Lopas Corp. as part of a redemption of all of its

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CCH Federal Taxation Basic Principles 2020

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