Yen hung, who is single, forms a corporation using a tax-free asset transfer. Which qualifies under Sec.
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Question:
Yen hung, who is single, forms a corporation using a tax-free asset transfer. Which qualifies under Sec. 351. She contributes property having an adjusted basis of $50,000 and an FMV of $40,000. The stock received from the corporation is Sec. 1244 stock. When Yen hung sells the stock for $30,000. Her loss is
A) |
|
Ordinary loss | Capital loss |
$ 0 | $20,000 |
B) |
|
Ordinary loss | Capital loss |
$10,000 | $10,000 |
C) |
|
Ordinary loss | Capital loss |
$20,000 | $0 |
D) |
|
Ordinary loss | Capital loss |
$10,000 | $0 |
Related Book For
South western Federal Taxation 2017 Essentials of Taxation Individuals and Business Entities
ISBN: 9780357109144
20th edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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