Question: PLEASE ANSWER THROUGH THE SHAREHOLDER PERSPECTIVE ( NOT CORPORATION) A corporation distributed land with a basis of $20,000 and a fair market value of $60,000

PLEASE ANSWER THROUGH THE SHAREHOLDER PERSPECTIVE ( NOT CORPORATION)

A corporation distributed land with a basis of $20,000 and a fair market value of $60,000 but was subject to a non-recourse liability of $70,000 to its sole shareholder. What would be the basis of the SHAREHOLDER in land ( NOT CORPRATION PLEASE- I understand the gain of $50k ) ? I'm trying to understand the shareholder's view receiving the land and their tax consequence. Do they record any income for receiving the property/ how does the liability affect it? Thanks.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

These questions are fromfrom 'South-Western Federal Taxation: Taxation of Business Entities 2015 - 18th edition' by James Smith. Please answer each ofquestions/problems 1-7 below: 1. Holly owns stock...

Please see attached photo for the question, please HAND WRITE your work and answer. you will get a thumbs up for your hard work in helping me to learn, thank you. Bella and Gigi, daughters of your...

the following question is to be answered with accounting knowledge, thank you. Bella and Gigi, daughters of your long-time clients, decide to establish a corporation to sell commercial real estate....

Dear Tutor, Can you please help do problem #1, #6 and #7 in the midterm file? Thank you. I have attached the ebook too, the problems should be covered by chapter 21, may in Chapter 27 and 28. Thank...

Corporations 2,000 shares outstanding are owned as follows: Paul, 800 shares Sandra (Pauls sister), 800 shares and Greta (Pauls granddaughter), 400 shares. During the current year, Krispy (E & P of...

Chapter 20: 18, 23, 24, 27 18. Dover Corporation (E & P of $800,000 has 1,000 shares of stock outstanding. The shares are owned as follows: Julia, 600 shares; Maxine (Julias sister), 300 shares; and...

Please show all work for each step! Thanks. Jack A Corp (E & P of $1,350,000) distributes land (basis of $423,000, fair market value of $697,000) to a shareholder, to carry out a qualifying stock...

1. Black Corporation (E & P of $1,350,000) distributes land (basis of $423,000, fair market value of $697,000) to Bailey Monroe, a shareholder, to carry out a qualifying stock redemption. Bailey...

Secret Corporation (E & P of $1,350,000) distributes land (basis of $392,000, fair market value of $823,000) to Saul, a shareholder, to carry out a qualifying stock redemption. Saul had a basis of...

Copper Corporation (E & P of $1.2 million) distributes land (basis of $410,000, fair market value of $650,000) to Lauren, a shareholder, to carry out a qualifying stock redemption. Lauren had a basis...

A sample consists of the following n = 7 scores: 5, 0, 4, 5, 1, 2, and 4. a. Compute the mean and standard deviation for the sample. b. Find the z-score for each score in the sample. c. Transform the...

The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the...

True or False? 4 0 3 ( b ) plans can be used to save for both retirement and educational expenses.

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97....