Jed and Mya form MY Corp. Jed transfers equipment (FMV $100,000; Basis $60,000; Subject to Debt...

 

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Jed and Mya form MY Corp. Jed transfers equipment (FMV $100,000; Basis $60,000; Subject to Debt of $50,000) in exchange for 50% of the corporation's stock. The debt was incurred for valid business purposes. Mya transfers a small parcel of land (FMV $50,000; Basis $100,000) in exchange for 50% of the corporation's stock. a. b. What are the tax consequences to Jed and Mya on the transfer? What is the basis of the contributed property to MY Corp? Jed and Mya form MY Corp. Jed transfers equipment (FMV $100,000; Basis $60,000; Subject to Debt of $50,000) in exchange for 50% of the corporation's stock. The debt was incurred for valid business purposes. Mya transfers a small parcel of land (FMV $50,000; Basis $100,000) in exchange for 50% of the corporation's stock. a. b. What are the tax consequences to Jed and Mya on the transfer? What is the basis of the contributed property to MY Corp?

Answer rating: 100% (QA)

a Jed will recognize a gain of 40000 on the transfer of the equipment Mya w... View the full answer