1, The company will manufacture and sell tracksuits (i.e., leisure-type wear). 

2, The company will be 100% owned by Doug.

3, The company will be funded by Doug contributing $1,000,000 in cash and a machine (personal-use property). The machine has a fair market value of $16,000, a cost basis of $14,000. The placed in- service date will be 1/15/24 and the recovery period will be 5 years. 

What are the tax consequences of Doug 's initial contribution of cash and property to the company? if the business were to operate for federal tax purposes as 1) a C-Corporation, 2) an S- Corporation, or 3) a Sole Proprietorship.

Answer rating: 100% (QA)

The tax consequences of Dougs initial contribution of cash and property to the company will vary depending on the tax classification of the business e... View the full answer