Heron, Inc. made a distribution of real estate with a FMV of $100,000 to its only...
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Heron, Inc. made a distribution of real estate with a FMV of $100,000 to its only shareholder, Jennifer, on Dec. 31. Heron's basis in the property was $60,000. Current year earnings and profits of Heron, Inc. (before the distribution) is $10,000 and it has accumulated $20,000 earnings and profits from prior years. Jennifer's basis in her Heron stock is $5,000. What will be the tax effect to Jennifer? Heron, Inc. made a distribution of real estate with a FMV of $100,000 to its only shareholder, Jennifer, on Dec. 31. Heron's basis in the property was $60,000. Current year earnings and profits of Heron, Inc. (before the distribution) is $10,000 and it has accumulated $20,000 earnings and profits from prior years. Jennifer's basis in her Heron stock is $5,000. What will be the tax effect to Jennifer?
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Tax Effect of Real Estate Distribution to Shareholder Image Heron Inc made a distribution of real estate with a FMV of 100000 to its only shareholder Jennifer on Dec 31 Herons basis in the property wa... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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