Barry Allen forms a new corporation with him as the sole shareholder. He transfers equipment that he bought for $200,000. The note still owing on the equipment is $75,000. He utilized Section 179 and bonus depreciation on the equipment, so his basis is zero. FMV is still real close to the $200,000 purchase price. This is all he transfers, and he takes 1,000 shares back. Any problems and if so how to fix.

Answer rating: 100% (QA)

Personal use Equipment Converted to business Use Basis will be lower of i Fair M... View the full answer