A, an individual, owns all 100 shares of X Co. A's basis in these shares is $1
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Question:
A, an individual, owns all 100 shares of X Co. A's basis in these shares is $1 per share ($100 total).
a) A transfers 10 shares to X in exchange for cash of 10. How will this transaction be treated for tax purposes?
b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50 shares to X in exchange for cash of 50. How will this transaction be treated?
c) Same as (b) except that A and B are husband and wife. Would this change your answer?
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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