Lois, who is single, transfers property with an $80,000 basis and a $120,000 FMV to Water Corporation
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Question:
Lois, who is single, transfers property with an $80,000 basis and a $120,000 FMV to Water Corporation in exchange for all 100 shares of Water stock. The shares qualify as Sec. 1244 stock. Two years later, Lois sells the shares for $28,000.
a. What are the amount and character of Lois’s recognized gain or loss?
b. How would your answer to Part a change if the FMV of the property were $70,000?
Related Book For
Federal Taxation 2017 Comprehensive
ISBN: 9780134421438
30th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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