Question: Jess contributed a building ( FMV 250000, adjusted tax basis 300000in return for 200 shares of blue, Inc and 50000 cash. The transfers qualify under

Jess contributed a building ( FMV 250000, adjusted tax basis 300000in 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)

How much realize gain/loss

How much gain or loss recognize?

What basis of the stock was received?

What is the basis of property to the corporation?

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