Jess contributed a building ( FMV 250000, adjusted tax basis 300000in return for 200 shares of blue,
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Question:
Jess contributed a building ( FMV 250000, adjusted tax basis 300000)in return for 200 shares of blue, Inc and 50000 cash. The transfers qualify under § 351.
JESS receipt of boot would not trigger the recognition of a loss because receiving boot can only trigger gain recognition. This rule means that a shareholder can never recognize a loss if § 351 applies to a transaction (recognition of loss never occurs in a § 351 transaction on the receipt of boot)
Required
How much realize gain/loss
How much gain or loss is recognized?
What basis of the stock was received?
What is the basis of property to the corporation?
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