Deb organized Beauty Shots and transferred a building with a basis of $100,000 and a fair market
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Question:
a) What are the tax consequences to B on the transfer of the building to Y Corporation?
b) What result if B did not borrow the additional $10,000 and, instead, Y Corporation borrowed $10,000 from a bank and gave $310,000 of Y common stock, $10,000 cash and will take the building subject to the $80,000 first mortgage?
c) Is the difference in results between (a) and (b), above, justified?
Focuses on Code Section 357(a)-(c), Section 358(d), Section 357(d)
Regulations
1.357-1, 1.357-2, 1.358-3
Related Book For
Federal Taxation 2019 Comprehensive
ISBN: 9780134833194
32nd edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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