I transfer property with a basis of $30,000 and FMV of $60,000 in exchange for 50 shares of XYZ Corporation. Joe transferred property with a basis of $10,000 and FMV of $40,000 in exchange for 50 shares. What is my gain? How much of it is recognized? What would change if in addition to the stocks I also received cash in the amount of $10,000?

Answer rating: 100% (QA)

Answer Gain Calculation To calculate your gain in this scenario we need to compare the fair market v... View the full answer