A corporation distributed land with a basis of $20,000 and a fair market value of $60,000 but was subject to a non-recourse liability of $70,000 to its sole shareholder. What would be the basis of the shareholder in land? I'm trying to understand the shareholder's view receiving the land and their tax consequence. Do they record any income for receiving the property/ how does the liability affect it?

Answer rating: 100% (QA)

If the nonrecourse liability attached to property exceeds the propertys fai... View the full answer