Claire and Simon form the Summer Corp, with a transfer of the following properties: Claire $1,200,000 cash
Question:
Claire and Simon form the Summer Corp, with a transfer of the following properties: Claire $1,200,000 cash Simon $1,200,000 FMV property $800,000 tax basis Claire will receive 50% and Simon 50% of the corporate stock.
VARIATION 1: return to original facts (same basis). Simon’s property is valued at $1,600,000 but is contributed subject to a $400,000 liability.
Complete the following
Claire Simon
Realized gain ________ ________
Recognized gain ________ _________
Basis of stock _________ _________
Summer basis in contributed asset _________ _________
VARIATION 2: Same as Variation 1 (same basis) except Simon's property is valued at 2,100,000 and is contributed subject to a liability of $900,000.
Complete the following
Claire Simon
Realized gain ________ ________
Recognized gain ________ _________
Basis of stock _________ _________
Summer basis in contributed asset __________ _________
